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Calculator Printiem eBook Show Me How Activity-Based Customer Costing Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small,
Calculator Printiem eBook Show Me How Activity-Based Customer Costing Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small, separately owned furniture stores and one is a retail chain. The reta chain buys 60% of the mattresses produced. The 19 smaller customers purchase mattresses in approximately equal quantities, where the orders are about the same su Data concerning Sleepeze's customer activity are as follows: Large Retailer Smaller Retailers 108,000 72,000 Units purchased Orders placed 36 3,600 Number of sales calls 18 882 Manufacturing costs $43,200,000 $28,800,000 $1,163,520 $1,745,280 Order filling costs allocated Sales force costs allocated $729,000 $486,000 *Currently located on sales volume (units sold). Currently, customer-driven costs are assigned to customers based on units sold, a unit-level driver. Required: Assign costs to customers by using an ABC approach. Round your answers and all intermediate calculations to the nearest dollar Order filling rate 600 X per order Selling call rate 1,500 X per sales call $ Cost assignment: Large retailer 52,200 X Smaller retailers 3,843,000 x
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