Wave Crest Cosmetics produces cosmetic products for 11 major buyers. One customer accounts for ½ of...
Wave Crest Cosmetics produces cosmetic products for 11 major buyers. One customer accounts for ½ of the sales, the other 10 customers account for the remaining sales. The 10 smaller customers place orders of about equal size. The large customer purchases 1,000,000 units per year by placing 3 orders per year, and the 10 smaller customers order 1,000,000 units in total by placing 400 orders per year. Order filling costs total $685,100 per year. How much would be assigned to the large customer as ordering costs using activity-based customer costs? a. $5,100 b. $342,550 c. $4,700 d. $680,000
Homework Answers
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Order filling cost per order = 685,100/(3+400) = 1700 per order Order filling cost allocated to large customers = 1700 * 3 = 5100 |
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Wave Crest Cosmetics produces cosmetic products for 11 major
buyers. One customer accounts for ½ of...
Wave Crest Cosmetics produces cosmetic products for 11 major buyers. One customer accounts for of the...
Wave Crest Cosmetics produces cosmetic products for 11 major buyers. One customer accounts for of the sales, the other 10 customers account for the remaining sales. The 10 smaller customers place orders of about equalse, The large customer purchases 1,000,000 units per year by placing orders per year, and the 10 smaller customers order 1,000,000 units in total by placing 300 orders per year. Ordering costs total $518,500 per year. How much would be assigned to the large customer as...
Which of the following cost reduction techniques focuses on nonvalue-added activities as a measure to reduce...
Which of the following cost reduction techniques focuses on nonvalue-added activities as a measure to reduce costs? a. Activity elimination b. Activity reduction c. Activity sharing d. Activity selection m#9 of 11 Wave Crest Cosmetics produces cosmetic products for 11 major buyers. One customer accounts for of the sales, the other 10 customers account for the remaining sales. The 10 smaller customers place orders of about equal size. The large customer purchases 1,000,000 units per year by placing 4 orders...
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Activity-Based Customer Costing Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets,...
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Activity-Based Customer Costing Dormirbien 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 Dormirbien's customer activity are as follows:
Required:
Assign costs to customers by using an ABC approach. Round
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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...
Sleepeze Company produces mattresses for 20 retail outlets, or 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...
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Garner Industries manufactures precision tools. The firm uses an activity-based costing system. CEO Deb Garner is...
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Wave Crest Cosmetics produces cosmetic products for 11 major buyers. One customer accounts for of the sales, the other 10 customers account for the remaining sales. The 10 smaller customers place orders of about equalse, The large customer purchases 1,000,000 units per year by placing orders per year, and the 10 smaller customers order 1,000,000 units in total by placing 300 orders per year. Ordering costs total $518,500 per year. How much would be assigned to the large customer as...
Which of the following cost reduction techniques focuses on nonvalue-added activities as a measure to reduce costs? a. Activity elimination b. Activity reduction c. Activity sharing d. Activity selection m#9 of 11 Wave Crest Cosmetics produces cosmetic products for 11 major buyers. One customer accounts for of the sales, the other 10 customers account for the remaining sales. The 10 smaller customers place orders of about equal size. The large customer purchases 1,000,000 units per year by placing 4 orders...
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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...
Activity-Based Customer Costing Dormirbien 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 Dormirbien's customer activity are as follows:
Required:
Assign costs to customers by using an ABC approach. Round
activity rates to at least...
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...
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