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3. Beta Company is a food distributor specialist. Its customers are: Supermarkets, Restaurants and Snack Bars. The company uses the Activity-based costing (ABC) as its
3. Beta Company is a food distributor specialist. Its customers are: Supermarkets, Restaurants and Snack Bars. The company uses the Activity-based costing (ABC) as its costing method The company has three departments. Customer service - with two activities: order evaluation and processing with the approved orders Warehouse - with two activities: collects items from stock and packing Shipping - with two activities: fills the tuck with the orders and shipping In April, the operating costs of these departments were: Operating Costs Labor costs Depreciation Consumables Truck Maintenance Other Costs Customer service Warehouse 5.000,00 6.000,00 2.000,00 8.000,00 1.000,00 1.000,00 0,00 0,00 500,00 400,00 Shipping 4.000,00 6.000,00 1.000,00 2.090,00 800,00 Managers pointed out the following proportions of resource consumption splitted by activities: Customer Service Warehouse Order Processing Collect evaluation Orders from stock Shipping Packing Filling the Shipping truck 50% 50% 40% 60% 80% 20% 20% 80% 50% 50% 20% 80% 60% Labor costs Depreciation Consumables Truck Maintenance Other Costs 40% 20% 80% 60% 40% 100% 50% 50% 50% 50% 50% 50% (The Activity's cost are distributed with each department according to the following quantities: Supermarkets 220 Restaurants 180 Snack bars 100 200 140 60 520 220 260 Qty of orders evaluated Qty of processed orders Qty of orders collected from stock Qty of packings Hours Spent filling the trucks Qty of deliveries 400 200 200 80 40 40 50 30 20 What are the costs of each customer (supermarkets, restaurants and snack bars)
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