Wiley Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small,
Fantastic news! We've Found the answer you've been seeking!
Question:
Wiley Manufacturing 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 purchase the same product. The customer-related activities and costs for the previous quarter are as follows:
Activity | JIT Distributors | Non-JIT Distributors |
---|---|---|
Sales orders | 500 | 30 |
Sales calls | 30 | 30 |
Service calls | 200 | 90 |
Average order size | 90 | 1,400 |
Manufacturing cost/unit | $50 | $50 |
Line Item Description | Amount |
---|---|
Processing sales orders | $160,000 |
Selling goods | 155,000 |
Servicing goods | 195,000 |
Calculate the activity rate for processing sales orders. (Round answer to two decimal places.)
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date: