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Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $72,000
Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $72,000 for purchasing support should be assigned to the individual vendors from the information given as follows: |
Vendor A | Vendor B | |
Units purchased | 106,000 | 212,000 |
Purchase orders (annual) | 12 | 48 |
Number of shipments received | 24 | 96 |
What is the amount of the purchasing costs that should be allocated to Vendor B, assuming Rogers uses number of shipments received to compute activity-based costs? |
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