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This is Whole one question.Show rough Work also.Thanks (b) 2. Activity Rates: (a) Estimated Overhead Activity Cost Pool Cost Expected Activity Customer deliveries ........ $400,000
This is Whole one question.Show rough Work also.Thanks
(b) 2. Activity Rates: (a) Estimated Overhead Activity Cost Pool Cost Expected Activity Customer deliveries ........ $400,000 5,000 deliveries Manual order processirg..... $300,000 4,000 orders Electronic order processing. $200,000 12,500 orders Line item picking... $500,000 400,000 line items 3. Activity costs are assigned to the two hospitals as follows: City General: (a) (b) Activity Cost Pool Activity Rate Activity Customer deliveries............ per delivery 8 deliveries Manual order processing .... O orders Electronic order processing. 8 orders Line item picking.... per line item 80 line items Total activity costs ............. (a) = (b) Activity rate per delivery per manual order per electronic order per line item picked (a) (b) ABC Cost per order per order R.R. County General: h (a) (b) ABC Cost Activity Cost Pool Customer deliveries.......... Manual order processing .... Electronic order processing. Line item picking.. Total activity costs (a) Activity Rate per delivery per order per order per line item (b) Activity deliveries orders orders line items ... .. County General 4. Customer margins for the two hospitals: I City General Sales .......... Cost of goods sold............... Gross margin ...... Customer deliveries ..... Manual order processing... Electronic order processing.... Line item picking........ Total activity costs Customer margin ..... 1. Total revenue received: City Cost of goods sold to the hospital (a).... Markup percentage. Markup in dollars (b)........ Revenue received from hospitals (a) + (b) ... General $30,000 x 5% $1,500 $31,500 County General $30,000 x 5% $1,500 $31,500 (b) 2. Activity Rates: (a) Estimated Overhead Activity Cost Pool Cost Expected Activity Customer deliveries ........ $400,000 5,000 deliveries Manual order processirg..... $300,000 4,000 orders Electronic order processing. $200,000 12,500 orders Line item picking... $500,000 400,000 line items 3. Activity costs are assigned to the two hospitals as follows: City General: (a) (b) Activity Cost Pool Activity Rate Activity Customer deliveries............ per delivery 8 deliveries Manual order processing .... O orders Electronic order processing. 8 orders Line item picking.... per line item 80 line items Total activity costs ............. (a) = (b) Activity rate per delivery per manual order per electronic order per line item picked (a) (b) ABC Cost per order per order R.R. County General: h (a) (b) ABC Cost Activity Cost Pool Customer deliveries.......... Manual order processing .... Electronic order processing. Line item picking.. Total activity costs (a) Activity Rate per delivery per order per order per line item (b) Activity deliveries orders orders line items ... .. County General 4. Customer margins for the two hospitals: I City General Sales .......... Cost of goods sold............... Gross margin ...... Customer deliveries ..... Manual order processing... Electronic order processing.... Line item picking........ Total activity costs Customer margin ..... 1. Total revenue received: City Cost of goods sold to the hospital (a).... Markup percentage. Markup in dollars (b)........ Revenue received from hospitals (a) + (b) ... General $30,000 x 5% $1,500 $31,500 County General $30,000 x 5% $1,500 $31,500 Step by Step Solution
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