Benton Company is preparing its annual profit plan. As part of its analysis of the cost...

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Benton Company is preparing its annual profit plan. As part of its analysis of the cost...

Benton Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $61,500 for purchasing support should be assigned to the individual vendors from the information given as follows:

	Vendor A	Vendor B
Units purchased	155,000	255,000
Purchase orders (annual)	7	28
Number of shipments received	21	84

What is the amount of the purchasing costs that should be allocated to Vendor B, assuming Benton uses units purchased to compute activity-based costs?

$49,200.
$23,250.
$12,300.
$38,250.

business accounting

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Answer 1

Answer #1

Answer $ 38,250 = Total Units Purchased = 155000 + 255000 Total Purchasing Cost $ 410000 61,500 Purchasing cost allocated to

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Answer 2

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