Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

please help eBook Show Me How Calculator Allocating Selling and Administrative Expenses using Activity-Based Costing Shrute Inc. manufactures office coplers, which are sold to retailers.

please help image text in transcribed
image text in transcribed
image text in transcribed
eBook Show Me How Calculator Allocating Selling and Administrative Expenses using Activity-Based Costing Shrute Inc. manufactures office coplers, which are sold to retailers. The price and cost of goods sold for each copier are as follows: Price $720 per unit Cost of goods sold 430 Gross profit $290 per unit In addition, the company incurs selling and administrative expenses of $252.770. The company wishes to assign these costs to its three major retail customers, The Warehouse, Kosmo Co., and Supply Universe. These expenses are related to its three major nonmanufacturing activities: customer service, sales order processing, and advertising support. The advertising support is in the form of advertisements that are placed by Shrute Inc, to support the retailer's sale of Shrute coplers to consumers. The budgeted activity costs and activity bases associated with these activities are: Budgeted Activity Activity Activity Base Cost Customer service $49,170 Number of service requests Sales order processing 21,600 Number of sales orders Advertising support 182,000 Number of ads placed Total activity cost $252,770 Activity-base usage and unit volume information for the three customers is as follows: The Warehouse Kosmo Co. Number of service requests 70 10 110 250 Number of sales orders Supply Universe Total 250 330 540 900 ENG 8:44 PM 9/18/2020 o arch 3 i 99 DELL eBook Show Me How Calculator The Warehouse Kosmo Co. Total Supply Universe 330 70 10 250 Number of service requests 900 250 110 540 Number of sales orders 10 20 110 140 Number of ads placed 640 640 640 1,920 Unit volume Required: 1. Determine the activity rates for each of the three nonmanufacturing activities. Round to the nearest whole dollar. Activity Rate Customer Service $ per serv. reg. Sales Order Processing $ per bid Advertising Support per customer design change

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Online Auditing Tool Towards A Generic Approach To Audit Business Processes Of An Information System On The Fly

Authors: Bhawna Mallic, Kopal Gakkhar

1st Edition

3838395115, 978-3838395111

More Books

Students explore these related Accounting questions

Question

What is the Global Reporting Initiative?

Answered: 3 weeks ago