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 Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are Required: Assign costs to customers by using an ABC approach. Round your answers and all intermediate calculations to the nea

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Answer 1

Answer #1

Answer:

Requirement 1:

Order Filling Rate	$ 675	Per Order
Selling Call Rate	$ 1,500	Per Sales Call

Order Filling Rate	= (1,472,580 + 981,720) / (36 + 3600)	Per Order
Selling Call Rate	= (837,000 + 558,000) / (18 + 882)	Per Sales Call

Requirement 2:

Cost Assignment
Large Retailers	$ 51,300	(36 * 675) + (18 * 1,500)
Small Retailers	$ 3,753,000	(3,600 * 675) + (882 * 1500)

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Answer 2

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