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Activity-Based Customer Costing Sleepeze company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small, separately owned furniture stores and one

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Activity-Based Customer Costing Sleepeze 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 Sleepeze's customer activity are as follows: Large Retailer 108,000 36 Smaller Retailers 72,000 Units purchased Orders placed 3,600 882 Number of sales calls 18 Manufacturing costs $43,200,000 Order filing costs allocated $1,363,500 Sales force costs allocated $810,000 Currently allocated on sales volume (uito). $28,800,000 5909,000 $540,000 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 filing rate 2,454,300 X per order Selling call rate per sales call Cost assignment Large retailer 51,300 X 3,753,000 X Smaller retailers Crack My Wort Determine the rate per activity by dividing the total cost of the activity by the total number of activity drivers. Assign costs to each customer type by applying the activity rate to the activity drivers per customer type

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