Question
Fence Industries is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $24,500 for
Fence Industries is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $24,500 for sales support should be assigned to the individual customers from the information given as follows: Customer A Customer B Units purchased 195,000 295,000 Purchase orders (annually) 8 32 What is the amount of the sales support costs that should be allocated to Customer A, assuming Fence uses purchases orders to compute activity-based costs? Multiple Choice $19,600 $14,750 $4,900 $9,750 The Miracle Company had 37,000 units in process on December 31, 2023 which was 80% complete as to materials but only 40% complete as to conversion costs. The company's records show 57,000 units were transferred to the Finished Goods Inventory during January 2024. On January 31, 2024, 33,000 units were on hand which were 30% complete as to conversion costs and 60% complete as to materials. What are the equivalent units of production (EUPs) for the conversion costs in January, assuming Miracle uses first-in, first-out (FIFO)? Multiple Choice 70,000 EUPs 63,200 EUPs 52,100 EUPs 56,100 EUPs Republic Industries decides to price delivery services according to the results of a recent activity-based costing (ABC) study. The study indicates Republic should charge $7 per order, 2% of annual order value for general delivery costs, $1.25 per item, and $25 for delivery. A year later, Republic collected the following information for two of its best customers: Cost driver Customer C Customer D Number of orders 18 7 Number of deliveries 10 10 Total number of items 1,900 3,800 Annual order value $ 185,000 $ 90,000 What are the total delivery costs charged to Customer C during the year? Multiple Choice $5,049 $6,849 $6,451 $6,800
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