A $1,834 Costs Administration Depreciation Fuel Insurance Maintenance Mortgages Salaries Taxes Total Costs $130 $17,000 $3,495 $450 SES $3,750 $15,000 $850 $40,750 Activities Overall Order Processing 10N Loading/Prep 15N Maintenance 15 Demurrage 10N Sales 20% Travel 15 Unloading 15% 30% 35N 30% 35% 30% 35% 30% 25% 30N 25% 15% 40 40% 30% Activities Overall 45% Order Processing $4,076 35% Loading/Prep 45% Maintenance 50% Demurrage 30% Sales 25% Travel $6,114 40% Unloading Total Costs $40,760 Traditional Costs $40,760 Mis Charge $2,446 512,228 $16,304 $12,228 A B Sales by Customer Costs 30% $12,228 40% $16,304 30% $12,228 Question 1 Under traditional costing approaches, to which customer is the largest amount of cost being assigned? B OC Question 2 Under Activity Based Costing methods, which customer actually has the lowest cost to serve? OB OC 4 pts Question 3 After comparing the cost allocations from traditional methods, and Activity Based Costing methods, which customer was being under charged the most? OB A $1,834 Costs Administration Depreciation Fuel Insurance Maintenance Mortgages Salaries Taxes Total Costs $130 $17,000 $3,495 $450 SES $3,750 $15,000 $850 $40,750 Activities Overall Order Processing 10N Loading/Prep 15N Maintenance 15 Demurrage 10N Sales 20% Travel 15 Unloading 15% 30% 35N 30% 35% 30% 35% 30% 25% 30N 25% 15% 40 40% 30% Activities Overall 45% Order Processing $4,076 35% Loading/Prep 45% Maintenance 50% Demurrage 30% Sales 25% Travel $6,114 40% Unloading Total Costs $40,760 Traditional Costs $40,760 Mis Charge $2,446 512,228 $16,304 $12,228 A B Sales by Customer Costs 30% $12,228 40% $16,304 30% $12,228 Question 1 Under traditional costing approaches, to which customer is the largest amount of cost being assigned? B OC Question 2 Under Activity Based Costing methods, which customer actually has the lowest cost to serve? OB OC 4 pts Question 3 After comparing the cost allocations from traditional methods, and Activity Based Costing methods, which customer was being under charged the most? OB