Book Calculator activity-Based Customer Costing Deeds Company sells custom-made machine parts to industrial equipment manufacturers by bidding cost plus 40 percent, where cou dofined as manufacturing cost plus order processing cost. There are two of customers: those who place small, frequent orders and those who place larger, less frequent orders. Cost and sales information by customer category is provided below $50 Frequently Ordering Less Frequently Customers Ordering Customers Sales orders 45,000 4,500 Order size 15 150 Average unit manufacturing cost $50 Order processing activity costs: Processing sales orders $2,878,500 Order-filing capacity is purchased in steps (order-processing ceris) of 1,000, each step costing 542,000; variable ordering activity costs are $35 per order. The activity capacity is 50,000 orders, thus, the tota order-fining costs $3,832,500 (50 steps * $42.000) + ($35 49,500). Current practice allocates ordering cost in proportion to the units purchased Deeds recently lost a bid for 100 units. (The per-unit bid price was $2 per un more than the winning bid.) The manager of Dends was worried that was a recurring trend for the farger orders. (other large orders had been lost with similar margins of loss.) No such problem was taking place for the smaller orders, the company rarely lost his er orders. Required: 1. Calculate the unit bid price offered to Dede's customers assuming that order filing cost is allocated to each customer try proportion to united. Note: Do not round interim calculations. Aound your finalwer to the nearest cent. 73.97 then calculate the new unit tid price for each customer typ. Motel Do not round interim caktons. Round the final order cost a location to the nearest whole dollar. Round mal bid prices to the nearest cent Order Cost Allocation Bid Price Frequently ordering 3.26 X 77.33 Less tree ring 68.7 x 70.72 Using this new price would Deeds have won the for the recently out? 2. Amethymnonces that the number is the best thing activity. Asson and costs using the river to each customer typang Assume that a newly implemented ABC system concludes that the number of orders placed is the best cost driver for the ordering activity, Assign order wing costs using this driver each customer men calculate the new unit bid price for each customer type. Note: Do not round interim calculations, Round the final order cost allocation to the nearest whole dollar. Round final bid prices to the nearest Order Cost Allocation round to whole dolor Bid Price round to two demais Frequently ordering 3.26 X 77.23 Less frequently ordering 68.72 X 70.72 Using this new price, would Deeds have won the bid for the units recently lost? Yes 3. What if Deeds offers a discount for orders of 3 units or more to the frequently ordering customers? Assume that all the frequently ordering customers can and do take advantage of this offer at the minimum level possible. Compute the new order cost allocation and bid price Note: Round the number of steps up to the nearest whole number, using that result in future calculations. For the Order Cost Allocation and Bid Price, do not round interim calculations. Then round the final order cost allocation to the nearest whole dollar and final Bid Price the nearest cent. Order Cost Allocation Bid Price Frequently ordering Can Deeds offer the original price from Requirement to the frequently ordering customers and not decrease its prototy? taken to provedene pro Next > Som Aur Grad Calculator Activity-Based Customer Costing Peeds Company sells custom-made machine parts to industrial equipment manufacturers by bidding cont plus 40 percent, where cost is defined as manufacturing cost plus order processing cost. There are two types of customers: those who place small, frequent orders and those who place larger, less frequent orders. Cost and sales information by customer category is provided below Frequently Ordering Less Frequently Customers Ordering Customers Sales orders 45,000 4,500 Order site 15 150 Average unit manufacturing cost $50 $50 Order processing activity costs: Processing sales orders $2,878.500 order-filing capacity is purchased to steps (order processing cerks) of 1,000, each step costing 42,000; variable order-filing activity costs are $35 per order. The activity capacity is 50,000 orders; thus, the total order cost is $3,832,500 (50 steps $42,000) + ($35 x 49,500). Current practice allocates ordering cost in proportion to the units purchased Peeds recently lost a bid for 100 units (The per unit bid price was $2 per unit more than the winning bid.) The manager of Deeds was worried that this was a recurring trend for the larger orders. Other larpe orders had been host with similar margins of loss.) No such problem was taking place for the smaller orders: the company rarely lost bids on smaller orders Required: 1. Calculate the unit bid price offered to Deeds's customers assuming that order filling cost is allocated to each customer category in proportion to units sold. Motel Do not round interim calculations. Round your finanswer to the nearest cert 73.97 5. Assume that a newly implemented ABC system concludes that the number of orders placed is the best cost driver for the order-filing activity. Assign order-filing costs using this driver to each customer type and then alt the new unit bid price for each customer type. Note: Do not round interim calculations. Round the final order cost allocation to the nearest whole dollar. Round final bid prices to the nearest cent. Order Cost Allocation Bid Price round to whole doar round two decimal Frequently ordering 3.26 x 77.23 Less frequently ordering 68.72 X 70.72 Using this new price, would Deeds have won the bid for the units recently lost? Tres y Previous Next Check My Work Sut seorang W atv CONCORSICA the nearest cent 73.97 P. Assume that a newly implemented ABC system concludes that the number of orders placed is the best cost driver for the order filing activity. Assign order ting costs using this driver to each customer type and then calculate the new unit bid price for each customer type. Note: Do not round interim calculations. Round the final order cost allocation to the nearest whole dollar. Round final bid prices to the nearest cent Order Cost Allocation Bid Price round to be decimal Frequently ordering 3.26 x 77.23 Less frequently ordering 68.72 X 70.72 Using this new price, would Deeds have won the bid for the units recently lost? Yes b. What if Deeds offers a discount for orders of 3 units or more to the frequently ordering customers? Assume that at the frequently ordering customers can and do take advantage of the offer the minimum levelessble Compute the new order cost wlocation and wild price Note: Round the number of steps Up to the nearest whole number, using that result in future calculations. For the Order Cont Alocation and Bid Price, do not round interim calculations. Then found the folder cost location to the nearest whole dollar and final Price the nearescent Order Cost Allocation Bid Price Frequently ordering Can Deeds offer the original price from Requirement to the frequently being customers and not decreases of Book Calculator activity-Based Customer Costing Deeds Company sells custom-made machine parts to industrial equipment manufacturers by bidding cost plus 40 percent, where cou dofined as manufacturing cost plus order processing cost. There are two of customers: those who place small, frequent orders and those who place larger, less frequent orders. Cost and sales information by customer category is provided below $50 Frequently Ordering Less Frequently Customers Ordering Customers Sales orders 45,000 4,500 Order size 15 150 Average unit manufacturing cost $50 Order processing activity costs: Processing sales orders $2,878,500 Order-filing capacity is purchased in steps (order-processing ceris) of 1,000, each step costing 542,000; variable ordering activity costs are $35 per order. The activity capacity is 50,000 orders, thus, the tota order-fining costs $3,832,500 (50 steps * $42.000) + ($35 49,500). Current practice allocates ordering cost in proportion to the units purchased Deeds recently lost a bid for 100 units. (The per-unit bid price was $2 per un more than the winning bid.) The manager of Dends was worried that was a recurring trend for the farger orders. (other large orders had been lost with similar margins of loss.) No such problem was taking place for the smaller orders, the company rarely lost his er orders. Required: 1. Calculate the unit bid price offered to Dede's customers assuming that order filing cost is allocated to each customer try proportion to united. Note: Do not round interim calculations. Aound your finalwer to the nearest cent. 73.97 then calculate the new unit tid price for each customer typ. Motel Do not round interim caktons. Round the final order cost a location to the nearest whole dollar. Round mal bid prices to the nearest cent Order Cost Allocation Bid Price Frequently ordering 3.26 X 77.33 Less tree ring 68.7 x 70.72 Using this new price would Deeds have won the for the recently out? 2. Amethymnonces that the number is the best thing activity. Asson and costs using the river to each customer typang Assume that a newly implemented ABC system concludes that the number of orders placed is the best cost driver for the ordering activity, Assign order wing costs using this driver each customer men calculate the new unit bid price for each customer type. Note: Do not round interim calculations, Round the final order cost allocation to the nearest whole dollar. Round final bid prices to the nearest Order Cost Allocation round to whole dolor Bid Price round to two demais Frequently ordering 3.26 X 77.23 Less frequently ordering 68.72 X 70.72 Using this new price, would Deeds have won the bid for the units recently lost? Yes 3. What if Deeds offers a discount for orders of 3 units or more to the frequently ordering customers? Assume that all the frequently ordering customers can and do take advantage of this offer at the minimum level possible. Compute the new order cost allocation and bid price Note: Round the number of steps up to the nearest whole number, using that result in future calculations. For the Order Cost Allocation and Bid Price, do not round interim calculations. Then round the final order cost allocation to the nearest whole dollar and final Bid Price the nearest cent. Order Cost Allocation Bid Price Frequently ordering Can Deeds offer the original price from Requirement to the frequently ordering customers and not decrease its prototy? taken to provedene pro Next > Som Aur Grad Calculator Activity-Based Customer Costing Peeds Company sells custom-made machine parts to industrial equipment manufacturers by bidding cont plus 40 percent, where cost is defined as manufacturing cost plus order processing cost. There are two types of customers: those who place small, frequent orders and those who place larger, less frequent orders. Cost and sales information by customer category is provided below Frequently Ordering Less Frequently Customers Ordering Customers Sales orders 45,000 4,500 Order site 15 150 Average unit manufacturing cost $50 $50 Order processing activity costs: Processing sales orders $2,878.500 order-filing capacity is purchased to steps (order processing cerks) of 1,000, each step costing 42,000; variable order-filing activity costs are $35 per order. The activity capacity is 50,000 orders; thus, the total order cost is $3,832,500 (50 steps $42,000) + ($35 x 49,500). Current practice allocates ordering cost in proportion to the units purchased Peeds recently lost a bid for 100 units (The per unit bid price was $2 per unit more than the winning bid.) The manager of Deeds was worried that this was a recurring trend for the larger orders. Other larpe orders had been host with similar margins of loss.) No such problem was taking place for the smaller orders: the company rarely lost bids on smaller orders Required: 1. Calculate the unit bid price offered to Deeds's customers assuming that order filling cost is allocated to each customer category in proportion to units sold. Motel Do not round interim calculations. Round your finanswer to the nearest cert 73.97 5. Assume that a newly implemented ABC system concludes that the number of orders placed is the best cost driver for the order-filing activity. Assign order-filing costs using this driver to each customer type and then alt the new unit bid price for each customer type. Note: Do not round interim calculations. Round the final order cost allocation to the nearest whole dollar. Round final bid prices to the nearest cent. Order Cost Allocation Bid Price round to whole doar round two decimal Frequently ordering 3.26 x 77.23 Less frequently ordering 68.72 X 70.72 Using this new price, would Deeds have won the bid for the units recently lost? Tres y Previous Next Check My Work Sut seorang W atv CONCORSICA the nearest cent 73.97 P. Assume that a newly implemented ABC system concludes that the number of orders placed is the best cost driver for the order filing activity. Assign order ting costs using this driver to each customer type and then calculate the new unit bid price for each customer type. Note: Do not round interim calculations. Round the final order cost allocation to the nearest whole dollar. Round final bid prices to the nearest cent Order Cost Allocation Bid Price round to be decimal Frequently ordering 3.26 x 77.23 Less frequently ordering 68.72 X 70.72 Using this new price, would Deeds have won the bid for the units recently lost? Yes b. What if Deeds offers a discount for orders of 3 units or more to the frequently ordering customers? Assume that at the frequently ordering customers can and do take advantage of the offer the minimum levelessble Compute the new order cost wlocation and wild price Note: Round the number of steps Up to the nearest whole number, using that result in future calculations. For the Order Cont Alocation and Bid Price, do not round interim calculations. Then found the folder cost location to the nearest whole dollar and final Price the nearescent Order Cost Allocation Bid Price Frequently ordering Can Deeds offer the original price from Requirement to the frequently being customers and not decreases of