Summary: Please analyze the case Dakota Office Products by identifying the activities, cost drivers and then analyzing customers A and B profitability. Assess Dakota's current use of a single overhead application rate. Review Dakota's allocation of overheads costs under ABC, Activity Based Costing. Under ABC sub-activities and respective cost drivers identified in the case consist of: Processing boxes, driven by the number of boxes, Desktop delivery, driven by deliveries, Manual ordering, driven by manual orders, Manuel processing of line items, driven by volume of items, Commercial freight, driven by the number of cartons shipped, and EDI activity, driven by the number of orders. Use the revised activity / cost drivers to allocate among customer A and customer B Dakota's overheads (Warehouse personnel expense, Warehouse non-personnel expenses, Freight, Delivery truck expense and Order entry expense). according to customers individual number of cartons ordered, number of cartons shipped by commercial freight, number of desktop deliveries, number of manual orders, number of manual line items and number of EDI orders. In addition to above overheads, deduct from customers sales respective costs of items purchased and average cost of accounts receivable (10% of outstanding balance) to identify each customer's profitability. DAKOTA OFFICE PRODUCTS , halapor offered to . Treaty.mpai y med priatest Duritaintamil Desco.cordion were DISTRIBUTION CENTER: ACTIVITY ANALYSIS Mariah Mata urai incurya Maiaa Tal thalias a wear Thama meme W whe The tastep isay hant pas . | DISTRIBUTION CENTER: ACTIVITY ANALYSIS . a pory Stomar Wolin Tomo door Wimbo The oww and hem ready to her more words c.rona ry Nyester 17 Mine bywy otomation and other reperty who were hemen wide on corect. They | Mwendomo.com . The proceed.com 7.000 ped by comment Thermometer on Domate 2.000 de People that not of an and how the decorating The data entry word 16.000 3.000 The 18.000 orders are only 10 m 50.000 was in a with the carton and wind der www. The water conta de protestere dhe peshen hoher day rom w.buting and recon organadigan This yaa nye butine a 2000 The wym, 2000 Ft Duty Operatin 2.000 Brewer UNDERSTANDING CUSTOMER PROFITABILITY DISTRIBUTION CENTER: ACTIVITY ANALYSIS . a pory Stomar Wolin Tomo door Wimbo The oww and hem ready to her more words c.rona ry Nyester 17 Mine bywy otomation and other reperty who were hemen wide on corect. They | Mwendomo.com . The proceed.com 7.000 ped by comment Thermometer on Domate 2.000 de People that not of an and how the decorating The data entry word 16.000 3.000 The 18.000 orders are only 10 m 50.000 was in a with the carton and wind der www. The water conta de protestere dhe peshen hoher day rom w.buting and recon organadigan This yaa nye butine a 2000 The wym, 2000 Ft Duty Operatin 2.000 Brewer UNDERSTANDING CUSTOMER PROFITABILITY alan UNDERSTANDING CUSTOMER PROFITABILITY Malathalaram tangayagar star 10 Ad wwonders, and had A. Mala arties otany. mrs. She was also Ext. Dakota Oce Products Income Statement CY2000 Wwwerowe 2.000.00 Datwyth 2.000.000 120.000 Exhibit2 Customer Profitability Report Current Method Customer Customer Grow www. Content Eta Services Provided in Year 2000 to Customers and B Customer Nanterre um re 89 Northerm Nerds Avenue Summary: Please analyze the case Dakota Office Products by identifying the activities, cost drivers and then analyzing customers A and B profitability. Assess Dakota's current use of a single overhead application rate. Review Dakota's allocation of overheads costs under ABC, Activity Based Costing. Under ABC sub-activities and respective cost drivers identified in the case consist of: Processing boxes, driven by the number of boxes, Desktop delivery, driven by deliveries, Manual ordering, driven by manual orders, Manuel processing of line items, driven by volume of items, Commercial freight, driven by the number of cartons shipped, and EDI activity, driven by the number of orders. Use the revised activity / cost drivers to allocate among customer A and customer B Dakota's overheads (Warehouse personnel expense, Warehouse non-personnel expenses, Freight, Delivery truck expense and Order entry expense). according to customers individual number of cartons ordered, number of cartons shipped by commercial freight, number of desktop deliveries, number of manual orders, number of manual line items and number of EDI orders. In addition to above overheads, deduct from customers sales respective costs of items purchased and average cost of accounts receivable (10% of outstanding balance) to identify each customer's profitability. DAKOTA OFFICE PRODUCTS , halapor offered to . Treaty.mpai y med priatest Duritaintamil Desco.cordion were DISTRIBUTION CENTER: ACTIVITY ANALYSIS Mariah Mata urai incurya Maiaa Tal thalias a wear Thama meme W whe The tastep isay hant pas . | DISTRIBUTION CENTER: ACTIVITY ANALYSIS . a pory Stomar Wolin Tomo door Wimbo The oww and hem ready to her more words c.rona ry Nyester 17 Mine bywy otomation and other reperty who were hemen wide on corect. They | Mwendomo.com . The proceed.com 7.000 ped by comment Thermometer on Domate 2.000 de People that not of an and how the decorating The data entry word 16.000 3.000 The 18.000 orders are only 10 m 50.000 was in a with the carton and wind der www. The water conta de protestere dhe peshen hoher day rom w.buting and recon organadigan This yaa nye butine a 2000 The wym, 2000 Ft Duty Operatin 2.000 Brewer UNDERSTANDING CUSTOMER PROFITABILITY DISTRIBUTION CENTER: ACTIVITY ANALYSIS . a pory Stomar Wolin Tomo door Wimbo The oww and hem ready to her more words c.rona ry Nyester 17 Mine bywy otomation and other reperty who were hemen wide on corect. They | Mwendomo.com . The proceed.com 7.000 ped by comment Thermometer on Domate 2.000 de People that not of an and how the decorating The data entry word 16.000 3.000 The 18.000 orders are only 10 m 50.000 was in a with the carton and wind der www. The water conta de protestere dhe peshen hoher day rom w.buting and recon organadigan This yaa nye butine a 2000 The wym, 2000 Ft Duty Operatin 2.000 Brewer UNDERSTANDING CUSTOMER PROFITABILITY alan UNDERSTANDING CUSTOMER PROFITABILITY Malathalaram tangayagar star 10 Ad wwonders, and had A. Mala arties otany. mrs. She was also Ext. Dakota Oce Products Income Statement CY2000 Wwwerowe 2.000.00 Datwyth 2.000.000 120.000 Exhibit2 Customer Profitability Report Current Method Customer Customer Grow www. Content Eta Services Provided in Year 2000 to Customers and B Customer Nanterre um re 89 Northerm Nerds Avenue