Managerial confusion

1.34 IR \"e? ..n| 14% i ACCT 1220 TEST 3 A - Saved \\/ Ai/OI\") 2. Taylor Corporation produces two models of their leather brief cases: deluxe and standard. The four activities and four drivers are as follows: Hours Activities: Cost Driver Deluxe Standard Total Cutting 3 96,00 Cutting hours 2,200 1,300 3,500 Assembling 42,000Assembly hours 1,150 980 2,130 Inspecting 15,0001nspection hours 800 500 1,300 Reworking 8,000Rework hours 20 35 55 Required: A. Calculate the consumption ratios for the four drivers, rounding to 2 decimal places. B, Calculate the activity rates that would be used to assign costs to each product, Round your answer to two decimal places. C, Calculate the unit cost assuming that 600 deluxe models were produced and 800 standard models were produced, rounded to the nearest cent. 3. Stink}; Corporation manufactures curtains for retail stores and for individual customers. The retail chain buys 70% of the curtains produced. The individual customers purchase curtains in approximately equal quantities, where the orders are about the same size. Data concerning W customer activity are as follows: Retail Stores Individual Customers Units sold 56,000 24,000 Orders placed 8 492 Number of sales calls 4 156 Manufacturing costs 8,000,000 3,500,000 Order lling costs allocated 375,000 225,000 Sales force costs allocated 265,000 135,000 Currently customerdriven costs are assigned to customers based on units sold, a unitlevel driver. Required: A. Assign costs to customers by using an ABC approach B, Determine the selling (order lling and sales force) cost per unit sold for each type of customer