Activity-Based Customer Costing

Dormirbien Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small, separately owned furniture stores and one is a retail chain. The retail chain buys 60% of the mattresses produced. The 19 smaller customers purchase mattresses in approximately equal quantities, where the orders are about the same size. Data concerning Dormirbien's customer activity are as follows:

	Large Retailer		Smaller Retailers
Units purchased	36,000		24,000
Orders placed	12		1,200
Number of sales calls	6		294
Manufacturing costs	$14,400,000		$9,600,000
Order filling costs allocated*	$484,800		$323,200
Sales force costs allocated*	$240,000		$160,000
*Currently allocated on sales volume (units sold).

Currently, customer-driven costs are assigned to customers based on units sold, a unit-level driver.

Required:

Assign costs to customers by using an ABC approach. Round your answers and all intermediate calculations to the nearest dollar.

Order filling rate	$ per order
Selling call rate	$ per sales call
Cost assignment:
Large retailer	$
Smaller retailers	$