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Question 7 Not yet answered Kirk Ltd. manufactures sporting shoes for sale in two leading sports equipment retailers: Rebez and Sportee. Information regarding the two
Question 7 Not yet answered Kirk Ltd. manufactures sporting shoes for sale in two leading sports equipment retailers: Rebez and Sportee. Information regarding the two customers is given below: Marked out of 2.00 P Flag question Revenue Rebez Sportee Total $720,000 $405,000 $1,125,000 $480,000 $200,000 $680,000 $240,000 $205,000 $445,000 Cost of goods sold Gross margin Kirk Ltd. incurs selling, general and administrative (SG&A) expenses of $300,000, which is related to two customer-driven activities: sales order processing and advertising support. The data associated with both customer-driven activities is as follows: Resource Driver Activity Driver No. of FTE Staff 12 No. of sales orders Sales Order Processing Advertising support Total 8 No. of ads placed 20 Rebez Sportee Total 20 30 50 Number of sales orders Number of ads placed 20 20 40 What is the total SG&A expense allocated to Sportee based on the activity-based costing approach? Meeting in "General" 17:36 What is the total SG&A expense allocated to Sportee based on the activity-based costing approach? Select one: O a. $60,000 O b. $72,000 c. $108,000 O d. $132,000 e. $168,000
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