Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed

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

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

Step: 3

blur-text-image

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

Advanced Operations Management

Authors: David Loader

2nd Edition

0470026545, 978-0470026540

More Books

Students also viewed these Accounting questions

Question

List the key components within occupational health and safety.

Answered: 1 week ago

Question

Identify the general types of employment laws in Canada.

Answered: 1 week ago

Question

Describe discrimination and harassment in the workplace.

Answered: 1 week ago