Solution 1:
Computation of Revenue - Worley Company | ||
Particulars | Universal | Memorial |
Cost of goods sold | $30,000.00 | $30,000.00 |
Markup (5%) | $1,500.00 | $1,500.00 |
Revenue | $31,500.00 | $31,500.00 |
Solution 2 & 3:
Determination of activity rate for each activity & allocation of overhead | ||||||||
Activity | Estimated Overhead Cost | Activity Base | Usage of Activity Base | Activity Rate | University | Memorial | ||
Usage | Allocated Costs | Usage | Allocated Costs | |||||
Customer deliveries | $500,000.00 | Nos of deliveries | 5000 | $100.00 | 10 | $1,000.00 | 25 | $2,500.00 |
Manual order processing | $248,000.00 | Nos of manual orders | 4000 | $62.00 | 0 | $0.00 | 30 | $1,860.00 |
Electronic order processing | $200,000.00 | Nos of electronic orders | 12500 | $16.00 | 15 | $240.00 | 0 | $0.00 |
Line item picking | $450,000.00 | Nos of line item picked | 450000 | $1.00 | 120 | $120.00 | 250 | $250.00 |
Others | $602,000.00 | No allocation | ||||||
Total | $2,000,000.00 | $1,360.00 | $4,610.00 |
Solution 4:
Computation of Customer margin - Worley Company | ||
Particulars | Universal | Memorial |
Sales Revenue | $31,500.00 | $31,500.00 |
Cost of goods sold | $30,000.00 | $30,000.00 |
Gross Margin | $1,500.00 | $1,500.00 |
Selling and administrative expenses | $1,360.00 | $4,610.00 |
Customer margin | $140.00 | -$3,110.00 |
Note: I have answered first 4 parts of the question as HOMEWORKLIB RULES policy, kindly post separate question for answer of remaining parts.
For years, Worley believed that the 5% markup covered its selling and admi at the 5%...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 6%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $106 to purchase these supplies. For years, Worley believed that the 6% markup covered its selling and...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $107 to purchase these supplies. For years, Worley believed that the 7% markup covered its selling and...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% markup covered its selling...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% markup covered its selling...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 6%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $106 to purchase these supplies. For years, Worley believed that the 6% markup covered its selling and...
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Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $107 to purchase these supplies. For years, Worley believed that the 7% markup covered its selling and...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies. For years, Worley believed that the 5% markup covered its selling and...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% markup covered its selling and...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies. For years, Worley believed that the 5% markup covered its selling and...