Answers
University |
Memorial |
Total |
|
Cost of purchase |
$ 39,000.00 |
$ 39,000.00 |
$ 78,000.00 |
Margin |
9% |
9% |
9% |
Total Revenue |
$ 42,510.00 |
$ 42,510.00 |
$ 85,020.00 |
Activity Cost Pool (Activity Measure) |
Total Cost |
Total Activity |
Activity Rates |
||
Customer deliveries (Number of deliveries) |
$ 567,000.00 |
7000 |
deliveries |
$ 81.00 |
per deliveries |
Manual order processing (Number of manual orders) |
$ 296,000.00 |
4000 |
orders |
$ 74.00 |
per orders |
Electronic order processing (Number of electronic orders) |
$ 288,000.00 |
12000 |
orders |
$ 24.00 |
per orders |
Line item picking (Number of line items picked) |
$ 936,000.00 |
480000 |
line items |
$ 1.95 |
per line items |
Other organization-sustaining costs (None) |
$ 670,000.00 |
||||
Total to be allocated |
$ 2,757,000.00 |
Overhead cost assigned to: |
|
University |
$ 2,056.50 |
Memorial |
$ 5,254.50 |
--Working
UNIVERSITY |
|||||
Activity Cost Pool (Activity Measure) |
Total Cost |
Activity Rates |
No. of cost drivers |
Cost Allocated |
|
Customer deliveries (Number of deliveries) |
$ 567,000.00 |
$ 81.00 |
per deliveries |
18 |
$ 1,458.00 |
Manual order processing (Number of manual orders) |
$ 296,000.00 |
$ 74.00 |
per orders |
0 |
$ - |
Electronic order processing (Number of electronic orders) |
$ 288,000.00 |
$ 24.00 |
per orders |
16 |
$ 384.00 |
Line item picking (Number of line items picked) |
$ 936,000.00 |
$ 1.95 |
per line items |
110 |
$ 214.50 |
Total Cost Allocated |
$ 2,056.50 |
||||
MEMORIAL |
|||||
Activity Cost Pool (Activity Measure) |
Total Cost |
Activity Rates |
No. of cost drivers |
Cost Allocated |
|
Customer deliveries (Number of deliveries) |
$ 567,000.00 |
$ 81.00 |
per deliveries |
20 |
$ 1,620.00 |
Manual order processing (Number of manual orders) |
$ 296,000.00 |
$ 74.00 |
per orders |
42 |
$ 3,108.00 |
Electronic order processing (Number of electronic orders) |
$ 288,000.00 |
$ 24.00 |
per orders |
0 |
$ - |
Line item picking (Number of line items picked) |
$ 936,000.00 |
$ 1.95 |
per line items |
270 |
$ 526.50 |
Total Cost Allocated |
$ 5,254.50 |
University |
Memorial |
|
Total revenues |
$ 42,510.00 |
$ 42,510.00 |
Less: |
||
Cost of Goods Sold |
$ 39,000.00 |
$ 39,000.00 |
Overhead cost allocated |
$ 2,056.50 |
$ 5,254.50 |
Margin |
$ 1,453.50 |
$ (1,744.50) |
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these...
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 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 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 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 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 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 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 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 9%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $109 to purchase these supplies For years, Worley believed that the 9% markup covered its selling and...