Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4 21.66 points eBook Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies
4 21.66 points eBook Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity- based costing methods and identified four activities. Data on these activities follow. Cost Driver Volume Activity Processing order Loading truck Delivering merchandise Processing invoice Total overhead Cost Driver Number of orders Number of items Number of orders Number of invoices Cost $ 84,000 370,000 102,000 85,000 $641,000 Driver Volume 6,000 orders 185,000 items 6,000 orders 5,000 invoices References Two of Marvin's customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow. Order value Number of orders City Diner Le Chien Chaud $86,000 66 Number of items Number of invoices 900 14 $96,000 280 1,600 180 Required: a. What would the delivery charge for each customer be under the current policy of 10 percent of order value? b. Calculate the cost of each activity for both restaurants to determine the total activity-based costing estimate of the cost of delivering to each customer. Complete this question by entering your answers in the tabs below. Required A Required B What would the delivery charge for each customer be under the current policy of 10 percent of order value? City Diner Delivery Charge Per Customer Le Chien Chaud < Required A Required B > Required: a. What would the delivery charge for each customer be under the current policy of 10 percent of order value? b. Calculate the cost of each activity for both restaurants to determine the total activity-based costing estimate of the cost of delivering to each customer. Complete this question by entering your answers in the tabs below. Required A Required E Calculate the cost of each activity for both restaurants to determine the total activity-based costing estimate of the cost of delivering to each customer. (Do not round intermediate calculations.) Processing order Loading truck Delivering merchandise Processing invoice Total cost City Diner Le Chien Chaud < Required A Required B >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started