Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Jerry Inc. Kate Co. Number of orders Units per order Sales returns: 30 440 2,000 Number of returns Total units returned Number of sales calls
Jerry Inc. Kate Co. Number of orders Units per order Sales returns: 30 440 2,000 Number of returns Total units returned Number of sales calls 4 60 180 Colleen sells its products at $180 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business intelligence software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: Activity Sales calls Order processing Deliveries Sales returns Sales salary Cost Driver and Rate 800 per visit 420 per order 400 per order 290 per return and $3 per unit returned 114,000 per month Required: 1. Classify activity costs into cost categories (unit, batch, etc.) and compute the total cost for Colleen Company to service Jerry Inc. and Kate Co. Jerry Inc. Kate Co Customer unit level costs: AS Customer batch level costs: Customer sustaining costs: Total
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started