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Homework: Chapter 15 Cost Allocation Question 6, P15-30 (similar to) Part 1 of 5 HW Score: 15.69%, 1.88 of 12 points O Points: 0 of
Homework: Chapter 15 Cost Allocation Question 6, P15-30 (similar to) Part 1 of 5 HW Score: 15.69%, 1.88 of 12 points O Points: 0 of 1 Save Earing Delights is a new company that manufactures custom jewelry. Earing Delights currently has six customers referenced by customer number: 01, 02, 03, 04, 05, and 06. Besides the costs of making the jewelry, the company has the following activities: (Click the icon to view the activities.) (Click the icon to view the customer data.) Read the requirements. Requirement 1. Calculate the customer-level operating income for each customer. (Complete all answer boxes. Enter a "O" for any zero balances. Use parentheses or a minus sign when entering operating losses.) Customer 01 02 03 04 05 06 Revenue $ 750 $ 5,200 $ 750 4,200 $ 2,520 320 $ 192 2,700 $ 1,620 450 3,120 450 Cost of product Gross profit Customer-level costs Customer orders Customer fittings Rush order costs Returns for repair Customer-level operating income (loss) More info 1. Customer orders. The salespeople, designers, and jewelry makers spend time with the customer. The cost-driver rate is $40 per hour spent with a customer. 2. Customer fittings. Before the jewelry piece is completed, the customer may come in to make sure it looks right and fits properly. Cost-driver rate is $30 per hour. 3. Rush orders. Some customers want their jewelry quickly. The cost-driver rate is $100 per rush order. 4. Number of customer return visits. Customers may return jewelry up to 30 days after the pickup of the jewelry to have something refitted or repaired at no charge. The cost-driver rate is $25 per return visit. Print Done view lile USTOMe cald. - Data table Information about the six customers follows. Some customers purchased multiple items. The cost of the jewelry is 60% of the selling price. Customer number 01 02 03 04 05 06 Sales revenue $ 750 $ 4,200 $ 320 $ 2,700 $ 5,200 $ 750 450 $ 2,520 $ 192 $ 1,620 $ 3,120 $ 450 3 8 1 7 10 4 Cost of item(s) Hours spent on customer order Hours on fittings Number of rush orders Number of return visits 0 1 1 3 2 1 0 1 1 1 1 0 0 1 0 0 0 1 Print Done
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