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Fitzgerald Supermarkets (FS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods.
Fitzgerald Supermarkets (FS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities and their activity cost rates as follows: Ordering Delivery and receipt of merchandise Shelf-stocking Customer support and assistance $93 per purchase order $74 per delivery $20 per hour $0.12 per item sold The revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity-area usage of the three product lines can be found on the "PRODUCTLINEINFO" tab. TOTAL The revenues, cost of goods sold, store support costs, activities that account for the store support costs, and B activity-area usage of the three product lines are as follows: 2. Baked Goods Milk and Fruit Juice Frozen Products 5 Financial data Revenues $59,000 $67,000 $50,000 Cost of goods sold $40,000 $52,000 $31,500 Store support ? ? ? Activity-area usage (cost-allocation base) Ordering (purchase orders) 42 25 13 Delivery (deliveries) 115 62 35 Shelf-stocking (hours) 165 155 18 Customer support (items sold) 15,000 21,000 7,800 $176,000 $123,500 $35,144 80 212 338 43,800 Under its simple costing system, FS allocated support costs to products at the following percentage of cost of god 28.5% 8 (Always use cell references and formulas where appropriate to receive full credit.) 1. Use the simple costing system to prepare a product-line profitability report for FS. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions or Productlineinfo tabs you will be marked wrong.) Baked Goods Milk and Fruit Juice Frozen Products Total 4 Revenues 5 Costs CH5A Under its simple costing system, FS allocated support costs to products at the following percentage of cost of god 28.5%) (Always use cell references and formulas where appropriate to receive full credit.) 1. Use the simple costing system to prepare a product-line profitability report for FS. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions or Productlineinfo tabs you will be marked wrong.) Baked Goods Milk and Fruit Juice Frozen Products Total Revenues Costs Cost of goods sold Store support Total costs Operating income Operating income/Revenues percentage 2. Use the ABC system to prepare a product-line profitability report for FS. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions or Productlineinfo tabs you will be marked wrong.) Baked Goods Milk and Fruit Juice Frozen Products Total Revenues Costs Cost of goods sold Ordering Delivery Shelf-stocking Customer support Total costs Operating income Operating income/Revenues percentage
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