Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small, separately owned furniture stores and one is a retail chain. The retail chain buys 60% of the mattresses produced. The 19 smaller customers purchase mattresses in approximately equal quantities, where the orders are about the same size. Data concerning Sleepeze's customer activity are as follows:
Large Retailer | Smaller Retailers | |||
Units purchased | 108,000 | 72,000 | ||
Orders placed | 36 | 3,600 | ||
Number of sales calls | 18 | 882 | ||
Manufacturing costs | $43,200,000 | $28,800,000 | ||
Order filling costs allocated* | $1,455,127 | $970,085 | ||
Sales force costs allocated* | $719,820 | $479,880 | ||
*Currently allocated on sales volume (units sold). |
Currently, customer-driven costs are assigned to customers based on units sold, a unit-level driver.
Required:
Assign costs to customers by using an ABC approach. Round your answers and all intermediate calculations to the nearest dollar.
Order filling rate | $ per order |
Selling call rate | $ per sales call |
Cost assignment: | |
Large retailer | $ |
Smaller retailers | $ |
Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small,...
Sleepeze Company produces mattresses for 20 retail outlets, or the 20 retail outlets, 19 are small, separately owned furniture stores and one is a retail chain. The retail chain buys 60% of the mattresses produced. The 19 smaller customers purchase mattresses in approximately equal quantities, where the orders are about the same size. Data concerning Sleepeze's customer activity are as follows: Large Retailer Smaller Retallers Units purchased 108,000 72,000 Orders placed 36 3,600 Number of sales calls 18 882 Manufacturing...
Activity-Based Customer Costing Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small, separately owned furniture stores and one is a retail chain. The retail chain buys 60% of the mattresses produced. The 19 smaller customers purchase mattresses in approximately equal quantities, where the orders are about the same size. Data concerning Sleepeze's customer activity are as follows: Large Retailer Smaller Retailers 72,000 Units purchased 108,000 Orders placed 3,600 Number of sales calls 882...
Activity-Based Customer Costing Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small, separately owned furniture stores and one is a retail chain. The retail chain buys 60% of the mattresses produced. The 19 smaller customers purchase mattresses in approximately equal quantities, where the orders are about the same size. Data concerning Sleepeze's customer activity are as follows: Large Retailer Smaller Retailers Units purchased 108,000 72,000 Orders placed 36 3,600 Number of sales calls...
72000 Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 wrewall, separately owned future wores and one is a retail chain. The real chain buys 60% of the motres produced. The 19 customers purchase mattresses in approximately equal quantities, where the orders are about the same size. Data concerning Sleepere's customer activity are as follow Large Retailer Smaller Retailers Units purchased 105.000 Orders placed 1600 Number of sales Manufacturing 563.200.000 Ordering costs allocated" $1.363,500 Salesforce...
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