Homework Answers
Solution:
Calculation of Rate per Cost Driver as per Activity Based Costing
|
Activity |
Cost $ |
Cost Driver |
Number of Cost Drivers |
Rate Per Cost Driver = Cost $ / Number of Cost Drivers |
|
Processing Order |
84,000.00 |
Number of Orders |
6,000 Orders |
$14 Per Order |
|
Loading Truck |
1,65,000.00 |
Number of Items |
1,10,000 Items |
$1.50 Per Item |
|
Delivery |
96,000.00 |
Number of Orders |
6,000 Orders |
$16 Per Order |
|
Invoicing |
75,600.00 |
Number of Invoices |
4,200 Invoices |
$18 Per Invoice |
|
4,20,600.00 |
Calculation of Cost of Delivery to the customers as per Activity Based Costing
|
Papa Henry |
Sweet and Sour Chicken |
|||||
|
Costs |
Number of Activities |
Activity Rate $ |
Cost $ |
Number of Activities |
Activity Rate $ |
Cost $ |
|
Processing Order |
64 |
14.00 |
896.00 |
125 |
14.00 |
1,750.00 |
|
Loading Truck |
725 |
1.50 |
1,087.50 |
1,700 |
1.50 |
2,550.00 |
|
Delivery |
64 |
16.00 |
1,024.00 |
125 |
16.00 |
2,000.00 |
|
Invoicing |
15 |
18.00 |
270.00 |
160 |
18.00 |
2,880.00 |
|
Cost of Delivery $ |
3,277.50 |
9,180.00 |
||||
Therefore, as per Activity Bsed Costing, Cost of Delivery for Papa Henry is $3,277.50 and Sweet and Sour Chicken is $9,180.
Add Answer to:
Karin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10% to the cost...
Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the...
Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity-based costing methods and identified four activities. Data on these activities follow. Cost Driver Volume Activity Cost Driver Cost Driver Volume Processing order Number of orders $ 105,000 7,000 orders Loading truck Number of items 285,000...
Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the...
Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity-based costing methods and identified four activities. Data on these activities follow. Cost Driver Volume Activity Cost Driver Cost Driver Volume Processing order Number of orders $ 66,000 6,000 orders Loading truck Number of items 195,000...
5.00 points Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent...
5.00 points Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity- based costing methods and identified four activities. Data on these activities follow Cost Driver Volume Cost Driver S 84,000 105,000 5496.000 7.000 orders Processing order Loading truck Number of orders Number of items...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Activity Measure Total Cost Total Activity Customer deliveries Number of deliveries $ 495,900 5,700 deliveries...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Total selling and administrative...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Activity Measure Total Cost Total Activity Customer deliveries Number of deliveries $ 525,100 5,900 deliveries...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Activity Measure Total Cost Total Activity Customer deliveries Number of deliveries $ 325,600 4,400 deliveries...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Activity Measure Total Cost Total Activity Customer deliveries Number of deliveries $ 302,400 4,200 deliveries...
Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hu...
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...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Total selling and administrative...
5.00 points Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity- based costing methods and identified four activities. Data on these activities follow Cost Driver Volume Cost Driver S 84,000 105,000 5496.000 7.000 orders Processing order Loading truck Number of orders Number of items...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Total selling and administrative...
Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Total selling and administrative...
Most questions answered within 3 hours.
-
Q. A buffer solution prepared by mixing 50.00 mL of 0.200 M
acetic acid and 50.00...
asked 11 minutes ago -
PLEASE DO BOTH OF THESE IN PYTHON!!! AND MAKE SURE THAT
I CAN COPY THE CODE....
asked 10 minutes ago -
While fishing you discover two types of mullet. Some
of the mullet jump out of the water...
asked 6 minutes ago -
4. How could the Fed "finance the government's debt"? How does
that work, exactly?
5. In...
asked 13 minutes ago -
The x component of the velocity of an object vibrating
along the x-axis obeys the equation...
asked 1 hour ago -
A junction box contains two trade size 2 raceways on the left
side, and two trade...
asked 1 hour ago -
Atmospheric Mass
Venus and Earth have about the same mass and radius, but the
atmospheric pressure...
asked 2 hours ago -
5. Discuss the use of fault tree analysis (FTA) for risk
assessment (maximum one paragraph).
asked 3 hours ago -
Given that a sample of aluminium oxide has a Young's modulus of
393 GPa and a...
asked 5 hours ago -
At a certain temperature, the equilibrium constant, Kc, for this
reaction is 53.3.
H2(g)+I2(g)−⇀↽−2HI(g)Kc=53.3
At this...
asked 6 hours ago -
Question1 ) The STL provides similiar classes called stack and
queue, both of which gave functions...
asked 7 hours ago -
For Questions 1-4, assume you have 5 bits available:
1. For (positive) integers: What is the...
asked 7 hours ago