Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Colleen Company has gathered the following data pertaining to acdivities it performed for two of its majon Number of orders Units per order Sales returns

image text in transcribed
image text in transcribed
Colleen Company has gathered the following data pertaining to acdivities it performed for two of its majon Number of orders Units per order Sales returns Jerry Inc Kate Co 50 2,000310 Number of returns Total units returned Number of sales calls 180 60 12 Colleen sells its products at $200 per unit The firm's gross margin ratio is 25% Both Jerry and Kate pay their accounts promptly and no accounts recervable is over 30 days. After using business intelligence software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs Activity Sales calls Order processing Deliveries Sales returns Sales salary Cost Driver and Rate S 600 per visit 240 per order 310 per order 300 per return and $5 per unit returned 88,000 per month Required: 1. Classify activity costs into cost categoies (unit, batch, etc.) and compute the total cost for Colleen Company to service Jerry Inc. and Kate Co Jerry Inc. Kate Co. Customer unit level costs s 1,440,000 $ 3,720,000 Customer batch level costs 600 2,400 15,500 1,800 7.200 Customer sustaining costs 1,448,730 3,739,TOO Total S 2,897.460$ 7,479,400 O Type here to search

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Governmental and Nonprofit Entities

Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus

16th Edition

78110939, 978-0078110931

More Books

Students also viewed these Accounting questions

Question

Under what circumstances is a shop-floor control system needed?

Answered: 1 week ago

Question

4. Are there any disadvantages?

Answered: 1 week ago

Question

3. What are the main benefits of using more information technology?

Answered: 1 week ago

Question

start to review and develop your employability skills

Answered: 1 week ago