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Bernacke Corp. is instituting an activity-based costing project in its ten-person purchasing department. Annual departmental overhead costs are $731,250. Because finding the best supplier takes

image text in transcribed Bernacke Corp. is instituting an activity-based costing project in its ten-person purchasing department. Annual departmental overhead costs are $731,250. Because finding the best supplier takes majority of effort in the department, most of the costs are allocated to this activity area. Many purchase orders are received in a single shipment. One special-order product manufactured by the company required the following purchasing department activities: 25 telephone calls, 50 purchase orders, and 35 receipts. a. What amount of purchasing department cost should be assigned to this product? Note: Round your final answer to two decimal places (i.e. round $4.355 to $4.36 ). $ b. If 100 units of the product are manufactured during the year, what is the purchasing department cost per unit? Note: Round your final answer to two decimal places (i.e. round $4.355 to $4.36 ). $ per unit c. If purchasing department costs had been allocated using telephone calls as the allocation base, how much cost would have been assigned to this product? Note: Round your final answer to two decimal places (i.e. round $4.355 to $4.36 )

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