Question: FOURTH TIME ASKING PLEASE SHOW WORK WITH EXCEL SPREADSHEET EQUATIONS I CANT JUST TAKE ANSWERS Merdian Tracer Company is evaluating some of its larger clients.


Merdian Tracer Company is evaluating some of its larger clients. Some of the management belleves that certain clients are not as profitable as others due to some of the period costs associated with each customer. Some of these customers may even be costing the company money. Management is interested in a customer cost analysis, but there is some debate as to whether or not Activity Based Costing would apply to this situation. 1. Calculate the Predetermined Overhead Rate if management believes that Order Processing is the main cost driver. 2. Use the Predetermined Overhead Rate from Requrement 1 to determine the profitability of each customer. 3. Use Activity Based Costing to determine the Activity Rates for each customer activity. 4. Use the Activity Rates to calculate the profitability of each customer
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