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If Family 99 Supermarkets allocates store support costs (all costs other than cost of goods sold) to product lines using an ABC system, calculate the
If Family 99 Supermarkets allocates store support costs (all costs other than cost of goods sold) to product lines using an ABC system, calculate the operating income and operating income as a percentage of revenues for each product line. You need to calculate the Overhead Calculation Base Activity Cost-Allocation Base Overhead Allocation Rate (RM) Bottle returns Ordering Delivery Shelf-stocking Total Support Costs RM4,800 RM 61,000 RM122,00 RM 70,000 Charge straight to product 610 purchase orders 1,220 deliveries 4,000 hours of shelf stocking 650,000 items sold RM125,000 Customer support Total 382,800 Soft Drinks Fresh Products Packaged Foods Revenues Cost of goods sold Bottle-return costs Ordering costs Delivery costs Shelf-stocking costs Customer support costs Total costs Operating income Operating income - Revenues Analyse the situation using the two costing system. Suggest some recommendations to 99 Supermarket management. If Family 99 Supermarkets allocates store support costs (all costs other than cost of goods sold) to product lines using an ABC system, calculate the operating income and operating income as a percentage of revenues for each product line. You need to calculate the Overhead Calculation Base Activity Cost-Allocation Base Overhead Allocation Rate (RM) Bottle returns Ordering Delivery Shelf-stocking Total Support Costs RM4,800 RM 61,000 RM122,00 RM 70,000 Charge straight to product 610 purchase orders 1,220 deliveries 4,000 hours of shelf stocking 650,000 items sold RM125,000 Customer support Total 382,800 Soft Drinks Fresh Products Packaged Foods Revenues Cost of goods sold Bottle-return costs Ordering costs Delivery costs Shelf-stocking costs Customer support costs Total costs Operating income Operating income - Revenues Analyse the situation using the two costing system. Suggest some recommendations to 99 Supermarket management
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