Homework Answers
a
| City Dinner =(80000*10%) | 8,000.00 |
| Le Chine Chaud=(90000*10%) | 9,000.00 |
b
| Cost | Driver Volume | Activity Rate (Cost /Driver Volume) | |
| Processing Order | 84000 | 7000 | 12 |
| Loading Truck | 217000 | 155000 | 1.4 |
| Delivering Merchandise | 105000 | 7000 | 15 |
| Processing Invoice | 90000 | 6000 | 15 |
| Activity Rate (Cost /Driver Volume) | City Diner | Le Chien Chaud | City Diner | Le Chien Chaud | |
| Processing Order | 12 | 60 | 220 | 720 | 2640 |
| Loading Truck | 1.4 | 600 | 1000 | 840 | 1400 |
| Delivering Merchandise | 15 | 60 | 220 | 900 | 3300 |
| Processing Invoice | 15 | 14 | 120 | 210 | 1800 |
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5.00 points Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent...
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...
Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the...
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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 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 Customer deliveries Manual order processing Electronic order processing Line item picking Total selling and administrative...
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