B C D E F G H 1 Activity-Based Costing and Activity-Based Management Free work cells 2 ABC, Retail Product-line Profitability Answer cells 3 4 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: 5 6 Ordering 7 Delivery and receipt of merchandise 8 Shelf-stocking 9 Customer support and assistance 10 $93 per purchase order $74 per delivery $20 per hour $0.12 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. 11 12 The revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity-area 13 usage of the three product lines are as follows: 14 15 Baked Goods Milk and Fruit Juice Frozen Products TOTAL 16 Financial data 17 Revenues $59,000 18 Cost of goods sold $40,000 $67,000 $52,000 $50,000 $31,500 $176,000 $123,500 19 Store support ? ? $35,144 20 Activity-area usage (cost-allocation base) 21 Ordering (purchase orders) 42 25 13 80 22 Delivery (deliveries) 115 62 35 212 23 Shelf-stocking (hours) 165 155 18 338 24 Customer support (items sold) 15,000 21,000 7,800 43,800 25 26 Under its simple costing system, FS allocated support costs to products at the following percentage of cost of goods sold. 28.5% 27 28 (Always use cell references and formulas where appropriate to receive full credit.) 29 30 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 31 you will be marked wrong.) AutoSave OFF : Ch 05A (Empt Home Insert Draw Page Layout Formulas Data Review View Tell me Calibri (Body) 12 v Paste BIU v v A A A v Wrap Text General Merge & Center v v $ % H10. fx A C D E G H 30 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 31 you will be marked wrong.) 32 33 34 Revenues 35 Costs 36 Cost of goods sold 37 Store support 38 Total costs 39 Operating income 40 Operating income/Revenues percentage 41 Baked Goods Milk and Fruit Juice Frozen Products Total 42 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 43 you will be marked wrong.) 44 45 46 Revenues 47 Costs 48 Cost of goods sold 49 Ordering 50 Delivery 51 Shelf-stocking 52 Customer support 53 Total costs 54 Operating income 55 Operating income/Revenues percentage Baked Goods Milk and Fruit Juice Frozen Products Total