using ABC method to prepare a detailed managment report to compute the customer margin.

1) compute customer margin for abbostford furniture.

2) compute customer margin for BC interior store.

3) compute customer margin for south regina mall.

cost of good manufactured statement

Distribution of Selling & Admin Resources Consumption Across Activity Cost Pools for 2020 Activities Making Sales Calls Negotiating Processing Warehousing Contracts Orders Activities New Customer Development Shipping Post-Sale Customer Service Other Total 5% 5% 30% 5% 10% 10% 15% 20% 100% 20% 60% 100% 20% Cost Items Administrative Wages Advertising Salesroom Buliding Depreciation Office Maintenance 75% 25% 100% 65% 35% 100% 5% 40% 20% 5% 5% 25% 100% Office Equipment Depreciation Promotional Materials 50% 5% 35% 10% 100% 100% 100% Shipping Costs 55% 35% 10% 100% 5% 40% 5% 100% 50% Salesroom Property Taxes and Insurance Salespeople Travel Salesroom Uunities and Fuel Warehouse Wages 20% 10% 5% 40% 25% 100% 15% 80% 5% 100% 100% 100% Other Administrative Expenses Activity Cost Pools and Activity Cost Driver Measures for the Year 2020 Activity Cost Pools Making Sales Calls Driver Quantity 215 Sales calls Negotiating Contracts 200 Negotiation hours Processing Orders 600 Orders Warehousing Activities $1,779,520 Description of the Activity Activity Cost Driver Measures Contacting customers by telephone or email, or making visits # of sales calls to customers' location and Zoom calls Conducting administrative activities related to negotiating # of hours of negotiation contracts with large, repeat customers Conducting clerical activities related to processing orders, # of orders Including online orders and customer accounting Operating the warehouse, including receiving completed Cost of goods sold goods from the factory, collecting items, and proparing them for shipping, and receiving returns Identifying potential customers and efforts related to acquiring # of new customers new customers and account setup Shipping merchandise to customers "FOB destination and (Pounds shipped X shipping merchandise returns Distance in miles) Handling customer questions and complaints, processing and # of support hours restocking returned merchandise Assigned all Selling & Administrative expenses that are not Amount of sales dollars associated with the other cost pools above 5 Customers New Customer Development Shipping 87,000,000 Pound miles Post-Sale Customer Support 1.800 Support hours $3,114,160 Other New customer development is a 0 or 1 variable. The quantity for a specific customer will be the customer is a new customer (it will be charged the new customer development rate) and if it is not a new customer (it will not be charged the new customer development rate), Sample of Three Customers Information from 2020 Sales Cost of goods sold Abbotsford Furniture $ 437,500 250,000 BC Interiors Store $ 131,250 75,000 South Regina Mall $ 87,500 50,000 Driver base # of sales calls Negotiation hours # of orders # of new customers Pound miles Support hours Driver quantity 14 4 19 0 1,877,000 7 Driver quantity 18 13 62 0 4,862,000 29 Driver quantity 8 10 3 4,692.000 31 Only the third customer is a new customer Cost of Goods Manufactured Statement For Year Ended December 31, 2020 $ 311,416 934,248 Timber furniture components (Direct Materials Used) Production payroll (Direct Labour) Factory Overhead: Factory Miscellaneous Components Manufacturing Maintenance Supplies Production Cleaning Supplies Manufacturing Maintenance Property Taxes - Factory Amortization - Factory Machinery Furniture Accessories Fibber Filling Factory Building Insurance Amortization-Factory Building Factory Utilities Production Supervisor Salary Total factory overhead costs Cost of Goods Manufactured 13,142 17.373 24,993 25,224 25,520 28,555 46,013 50,856 62.013 68,750 81,417 90,000 533,856 $1.779.520 Distribution of Selling & Admin Resources Consumption Across Activity Cost Pools for 2020 Activities Making Sales Calls Negotiating Processing Warehousing Contracts Orders Activities New Customer Development Shipping Post-Sale Customer Service Other Total 5% 5% 30% 5% 10% 10% 15% 20% 100% 20% 60% 100% 20% Cost Items Administrative Wages Advertising Salesroom Buliding Depreciation Office Maintenance 75% 25% 100% 65% 35% 100% 5% 40% 20% 5% 5% 25% 100% Office Equipment Depreciation Promotional Materials 50% 5% 35% 10% 100% 100% 100% Shipping Costs 55% 35% 10% 100% 5% 40% 5% 100% 50% Salesroom Property Taxes and Insurance Salespeople Travel Salesroom Uunities and Fuel Warehouse Wages 20% 10% 5% 40% 25% 100% 15% 80% 5% 100% 100% 100% Other Administrative Expenses Activity Cost Pools and Activity Cost Driver Measures for the Year 2020 Activity Cost Pools Making Sales Calls Driver Quantity 215 Sales calls Negotiating Contracts 200 Negotiation hours Processing Orders 600 Orders Warehousing Activities $1,779,520 Description of the Activity Activity Cost Driver Measures Contacting customers by telephone or email, or making visits # of sales calls to customers' location and Zoom calls Conducting administrative activities related to negotiating # of hours of negotiation contracts with large, repeat customers Conducting clerical activities related to processing orders, # of orders Including online orders and customer accounting Operating the warehouse, including receiving completed Cost of goods sold goods from the factory, collecting items, and proparing them for shipping, and receiving returns Identifying potential customers and efforts related to acquiring # of new customers new customers and account setup Shipping merchandise to customers "FOB destination and (Pounds shipped X shipping merchandise returns Distance in miles) Handling customer questions and complaints, processing and # of support hours restocking returned merchandise Assigned all Selling & Administrative expenses that are not Amount of sales dollars associated with the other cost pools above 5 Customers New Customer Development Shipping 87,000,000 Pound miles Post-Sale Customer Support 1.800 Support hours $3,114,160 Other New customer development is a 0 or 1 variable. The quantity for a specific customer will be the customer is a new customer (it will be charged the new customer development rate) and if it is not a new customer (it will not be charged the new customer development rate), Sample of Three Customers Information from 2020 Sales Cost of goods sold Abbotsford Furniture $ 437,500 250,000 BC Interiors Store $ 131,250 75,000 South Regina Mall $ 87,500 50,000 Driver base # of sales calls Negotiation hours # of orders # of new customers Pound miles Support hours Driver quantity 14 4 19 0 1,877,000 7 Driver quantity 18 13 62 0 4,862,000 29 Driver quantity 8 10 3 4,692.000 31 Only the third customer is a new customer Cost of Goods Manufactured Statement For Year Ended December 31, 2020 $ 311,416 934,248 Timber furniture components (Direct Materials Used) Production payroll (Direct Labour) Factory Overhead: Factory Miscellaneous Components Manufacturing Maintenance Supplies Production Cleaning Supplies Manufacturing Maintenance Property Taxes - Factory Amortization - Factory Machinery Furniture Accessories Fibber Filling Factory Building Insurance Amortization-Factory Building Factory Utilities Production Supervisor Salary Total factory overhead costs Cost of Goods Manufactured 13,142 17.373 24,993 25,224 25,520 28,555 46,013 50,856 62.013 68,750 81,417 90,000 533,856 $1.779.520