Question

Please help with part a!

Pharmax Distributorz speializcs in the distribution of pharmaceutical products at the retail level. Pharmax's customer base is comprised of three main retail group: general supermarket chains, large drugstere chains, and smal, single-store Ma & Pa" pharmacies. To evaluate re a ve prat ahillty 0 ดach customar grou uovii Jala for a typical uperetig period: pharmax ar s to l an allocatlon system that recognizas the re ati e o mand, hat ese grnu Paca nn าค company's r snurcas. Parma chiet a countant examined th rm &u nort cnats and activit and calleenart th Support Activity Order processing Line item processing Gtore deveries Carten handling Budyeled Cosl $73,000 $66,000 $72,000 570,000 Tolal Cost Driver 2,040 customer urders 26,820 ne items 1,460 deliveries 74,000 cartons shipped Ehc also gathared the following data for a typical aparating period: Drugstore Chains 150 Line items Deliveries Cartons shipped 1,500 19,500 1,050 18,900 2,250 5,070 8,000 27,900 REQ1ITRED ROUND ALL ALLOCATTON RATES TO THE NEAREST CENT AND ALLOCATIONS TO THE NEAREST DOLLAR. Part A (2 tries: 3 points) Phamax uses a single-driver system to allocate its support coats, with number of deliveries as the single driver, how much would be allocated to its Ma & Pa customers? 205518

Answer 1

Part A:
Total budgeted cost	281000
Customers drivers	1460
Activity rate	192.47
X Ma & Pa deliveries	1050
Overhead allocated	202094
Overhead allocated to Ma & Pa customer $202094