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4:22 cbkj03 The 601 Blue Jean Company has decided to allocate the cost of its Warchouse and Distribution Center to its customers using activity-based costing,

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4:22 cbkj03 The 601 Blue Jean Company has decided to allocate the cost of its Warchouse and Distribution Center to its customers using activity-based costing, in order to better assess profitability by customer. The warehouse manager determines that the only costs that are economically feasible to trace directly to the customer are outhound freight costs. The manager then decides that the following overhead cost pools should be allocated to customers using the following cost drivers: 8-17 Cosr AccoUNTING FOR MANAGERIAL PLANNING, DECISION MAKING, AND CONTROL Overhead Cost Pool Cost Driver (Allocation Base) Order Processing Department Number of individual orders processed for that customer Order Filling DepartmentNumber of line items on all pull tickets for that customer Quality Control Department Number of cartons shipped to that customer Sh Lep tinent Number of cartons shipped to that customer Following are relevant data for each overhead cost pool Order Processing Department Total costs for this department Total number of orders processed Order Filling Department Total costs for this department Total number of line-items on all pull tickets Quality Control Department $3,000000 200,000 $4,000,000 4,000.000

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