Redwood Company sellschaft kits and supplies to retail outlets and through its to some of the items are manufactured by Redwood, while others are purchased for resale. For the products it manufactures, the company currently bases its setting prices on a product conting system that accounts for direct material direct labor, and the associated overhead costs. In addition to these product costs, Redwood incurs substantial selling costs, and Roger Jackson, controle has used that these selling costs should be included in the product pricing structure Aher studying the costs incurred over the past two years for one of product is of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows Cat Cat tot De Tales 1751,500 Nons of pars old tartalla Catala 1 m, 488 684 let it l 4. Cost of cataly sales 123,600 Seined the catalog Credit und vertion 17.04. uber of retailer Total since 01.03,100 The initing yom is sold to retail outlets in bowes each containing 12 ss of yarn. The sale of partial boxes is not permitted Commissions are paid on sales to retail outlets but not on catalog sales. The cost of all sales includes telephone costs and the wages of personnel who take the catalog orders. Jackson believes that the selling costs vary significantly with the size of the order Order sizes are divided into three categories as follows Order Catalogs al 1-10 is 1-10 beses Mei 11-30 ise 10 ore tar Der 30 h Over 10 be An analysis of the previous year's records produced the following Rata in perhos Catalog sale in an her of mail orders Cal distributed Media Total 118.00 250.500 11.06.10 56.000 200.000 2.15 5,500 9.000 Required: 1. Prepare a schedule showing Redwood Company's total selling cost for each order site and the per kein selling cost within each Orders Round your intermediate calculations and unit cost per order to 2 decimal places) REDWOOD COMPANY Computation of Seling Costs Dy Order Per Winther De We Costa Credit and collection Total cost for all orders of Gold Un cordero 2. An analysis of saling Co Shows: [You may select more than one new Single dick the box with the question mark to produce check mark for a correct answer and double dick the box with the question markets empty the box for a wrong answer. Any bones left with a question mark will be automatically graded as incorrect) Management may want to come toget Smat orders we preferible to medium and content urgeodes were to sider Eating should be easieren Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, Redwood Incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure, After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Sales commissions Catalogs Cost of catalog sales Credit and collection Total selling costs Amount Coat Driver $ 751,500 Boxes of yarn sold to retail stores 430,400 Catalogs distributed 123,000 Skeins sold through catalog 99,000 Number of retail orders $1,403,900 The knitting yarn is sold to retail outlets in boxes, each containing 12 skeins of yarn. The sale of partial boxes is not permitted. Commissions are paid on sales to retail outlets but not on catalog sales. The cost of catalog sales includes telephone costs and the wages of personnel who take the catalog orders. Jackson believes that the selling costs vary significantly with the size of the order. Order sizes are divided into three categories as follows: Order size Small Medium Large Catalog Sales 1-10 skeins 11-20 skeins Over 20 skeins Retail Sales 1-10 boxes 11-20 boxes Over 20 boxes An analysis of the previous year's records produced the following statistics. Retail sales in boxes (12 skeins per box) Catalog sales in skeins Number of retail orders Catalogs distributed Order Size Small Medium Large 2,500 60,000 188,000 89,000 62,000 54,000 585 2,915 5,500 412,730 283,470 164,600 Total 250, 500 205,000 9,000 860,800