Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. Compute the total activity costs that would be assigned to City Office and County Office. City Office County General Total activity costs 4. Compute

image text in transcribedimage text in transcribed

3. Compute the total activity costs that would be assigned to City Office and County Office. City Office County General Total activity costs 4. Compute Quick Supply's customer margin for City Office and County Office. (Hint: Do not overlook the $30,000 cost of goods sold that Quick Supply incurred serving each office.) (Negative amounts should be indicated by a minus sign.) City Office County Office Customer margin (loss) 5. This part of the question is not part of your Connect assignment Quick Supply distributes office supplies to small to medium sized offices throughout the Region of Waterloo, Ontario. Quick Supply sets its prices by marking up its cost of goods sold by 5%. For example, if Quick Supply paid $100 to buy supplies from manufacturers, Quick Supply would charge its customers $105 to purchase these supplies. For years, Quick Supply believed that the 5% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Quick Supply decided to implement an ABC system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities, as shown below: Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Other organization-sustaining costs Total selling and administrative expense Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked NA Total Cost $ 400,000 380, eee 200,000 500, eee 600, eee $2,000, eee Total Activity 5,000 deliveries 4, orders 12,500 orders 400,000 line items Quick Supply gathered the data below for two typical offices that it serves-City Office and County Office (both offices purchased a total quantity of office supplies that had cost Quick Supply $30,000 to buy from manufacturers): Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Activity City Office County Office 8 12 @ 15 8 se 100 Required: 1. Compute the total revenue that Quick Supply would receive from City Office and County Office. City Office County Office Total revenue received 2. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Activity rate per delivery per manual order per electronic order per line item picked

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2019

Authors: Bernard J. Bieg, Judith A. Toland

29th Edition

1337619779

More Books

Students also viewed these Accounting questions

Question

In what research projects are your students currently involved?

Answered: 1 week ago