Question
Bison Creek Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the
Bison Creek Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $250,000 for purchasing support should be assigned to the individual vendors from the information given as follows:
Vendor A | Vendor B | Vendor C | |
Units purchased | 100,000 | 100,000 | 50,000 |
Purchase orders (annual) | 12 | 24 | 50 |
Number of Shipments received | 12 | 54 | 100 |
a. Prepare a schedule to allocate the purchasing costs to the three vendors, assuming Bison Creek uses units purchased to compute activity-based costs.
b. Prepare a schedule to allocate the purchasing costs to the three vendors, assuming Bison Creek uses purchases orders to compute activity-based costs.
c. Prepare a schedule to allocate the purchasing costs to the three vendors, assuming Bison Creek uses number of shipments to compute activity-based costs.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started