Activity-Based Costing and Activity-Based Management ABC, Retail Product-line Profitability Fitzgerald Supermarkets (FS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities and their activity cost rates as follows: Ordering Delivery and receipt of merchandise Shelf-stocking Customer support and assistance $95 per purchase order $76 per delivery $19 per hour $0.15 per item sold The revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity-area usage of the three product lines can be found on the "PRODUCTLINEINFO" tab. Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions or Productlineinfo tabs you will be marked wrong. Requirements 1 Use the simple costing system to prepare a product-line profitability report for FS. a. Enter all amounts as positive values. DO NOT use parentheses or a minus sign for amounts to be subtracted. 2 Use the ABC system to prepare a product-line profitability report for FS. Enter all amounts as positive values. DO NOT use parentheses or a minus sign for amounts to be subtracted. a. The revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity- area usage of the three product lines are as follows: Baked Goods Milk and Fruit Juice Frozen Products $60,000 $41,000 $12,300 $66,500 $51,000 $15,300 $50,500 $32,000 $9,600 Financial data Revenues Cost of goods sold Store support Activity-area usage (cost-allocation base) Ordering (purchase orders) Delivery (deliveries) Shelf-stocking (hours) Customer support (items sold) 44 120 170 15,400 24 60 150 20,200 14 36 20 7,960 Under its simple costing system, FS allocated support costs to products at the rate of 30% of cost of goods sold. 1. Use the simple costing system to prepare a product-line profitability report for FS. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions or Productlineinfo tabs you will be marked wrong.) Baked Goods Milk and Fruit Juice Frozen Products Total Revenues Costs Cost of goods sold Store support Total costs Operating income Operating income/Revenues percentage 2. Use the ABC system to prepare a product-line profitability report for FS. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions or Productlineinfo tabs you will be marked wrong.) Baked Goods Milk and Fruit Juice Frozen Products Total Revenues Costs Cost of goods sold Ordering Delivery Shelf-stocking Customer support Total costs Operating income Operating income/Revenues percentage