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Instructions Using the Activity Based Cost technique, and the information attached, compute to the nearest whole number the mis-charge for each customer when ABC Costs
Instructions Using the Activity Based Cost technique, and the information attached, compute to the nearest whole number the mis-charge for each customer when ABC Costs are subtracted from Traditional Costs. ABC Quiz.docx Costs Activity Costs Overall Administration $64.00 Billing 10% 30% 30% 40% Depreciation $1.80 Order Processing 10% 15% 35% 50% Insurance $2.40 Maintenance 15% 35% 30% 35% Maintenance $35.00||Picking 20% 20% 20% 60% Mortgages $2.501 Sales 20% 35% 25% 40% Salaries $72.00 Shipping 25% 30% 30% 40% Taxes $34.00 Transportation $81.00 Total Costs $292.70 Customer Total A | B C Billing $11.71 Order Processing $29.27 Maintenance Picking $11.71 Sales $14.64 Shipping ABC Costs $292.70 Traditional Costs $292.70 $102.45 $73.18 $117.08) Mis-Charge Question 1 Rounded to the nearest whole dollar, the mischarge to Customer A is ? > Question 2 Using Traditional Costing, Customer A is being Overcharged Undercharged Question 3 Rounded to the nearest whole dollar, the mischarge to Customer B is ________? Question 4 Using Traditional Costing, Customer B is being Overcharged Undercharged Question 5 Rounded to the nearest whole dollar, the mischarge to Customer Cis _______? Question 6 Using Traditional Costing, Customer C is being Overcharged Undercharged
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