2. Calculate customer cost per distributor type using activity-based cost assignment
JIT | Non- JIT | |
Ordering Cost (b/f) | $1440000 | $1790000 |
Selling Cost | $560000 | $560000 |
Services Cost | $700000 | $350000 |
Total | $ 2700000 | $ 2700000 |
Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each...
Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JIT Distributors Non-JIT Distributors Sales orders 1,000 100 Sales calls 70 70 Service calls 350 175 Average order size 850...
Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JIT Distributors Non-JIT Distributors Sales orders 1,200 120 Sales calls 70 70 Service calls 350 175 Average order size 550...
Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JIT Distributors Non-JIT Distributors Sales orders 700 70 Sales calls 70 70 Service calls 350 175 Average order size 750...
Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JIT Distributors Non-JIT Distributors Sales orders 900 90 Sales calls 70 70 Service calls 350 175 Average order size 650 6,500 Manufacturing cost/unit...
Workshape Manufacturing has two dasses of distributors: JIT distributors and non-JIT distributors. The IT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer activities and costs for the previous quarter are as follows: Non-IT distributors Activity Sales Orders Sales Calls Service Calls Average Order Size Manufacturing Cost/Unit IT distributors SOO 30 200 90 1,400 $50 III Customer Costs: Processing Sales Orders Selling Goods...
a- compute Total manufacturing cost Per unit of Deluxe " under current plant-wide overhead allocation method "" based on Direct labor hours. b- compute total manufacturing cost per unit of Deluxe using activity based costing for the allocation of factory overhead cost. Carry your overhead rate calculations up to THREE decimal point. --------------'xxxxxxx a- using activity based costing for the allocation of operating expenses of Alberto company, compute operating profit or loss made from customer Zillow company. b- using...
1) X Company incurred the following costs in 2017: Factory insurance $5,629 Customer service 4,766 Advertising costs 4,594 Factory maintenance 5,023 Direct labor 5,972 Direct materials 4,514 Sales salaries 5,023 Factory utilities 5,153 Research & Development 5,599 Material handling 4,174 What was total overhead in 2017? 2) X Company had the following inventory account balances in 2017: Account January 1 December 31 Materials $14,524 $16,900 Work in Process 14,622 21,768 Finished Goods 14,594 14,594 The following additional information for the...
At the economic order quantity Total annual inventor costs holding costs and ordering costs are all minimized Total annual inventory costs and holding costs are minimized Total annual inventory costs are minimized and hold costs equal ordering costs Total annual inventory costs are minimized and holds costs exceed ordering costs Total annual inventory cost are minimized and ordering costs exceed holding costs Consider the following statements regarding traditional costing systems: Overhead costs are applied to products on the basis volume...
Customer Profitability Analysis Rogers Aeronautics, LTD, is a British aeronautics subcontract company that designs and manufactures electronic control systems for commercial airlines. The vast majority of all commercial aircraft are manufactured by Boeing in the U.S. and Airbus in Europe; however, there is a relatively small group of companies that manufacture narrow-body commercial jets. Assume for this exercise that Rogers does contract work for the two major manufacturers plus three companies in the second tier. Because competition is intense...
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