Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JIT Distributors Non-IT Distributors Sales orders 800 80 Sales calls Service calls 70 70 350 175 Average order size 850 8,500 Manufacturing cost/unit $125 $125 Customer costs: Processing sales orders $3,080,000 Selling goods 1,120,000 1,050,000 $5,250,000 Servicing goods Total Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation Previous Next