Nerrod Company sells its products at $900 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs:

Activity	Cost          Driver and Rate
Sales calls	$	600	per visit
Order processing	$	200	per order
Deliveries	$	95	per order + $0.50 per mile
Sales returns	$	110	per return and $3.00 restocking per unit returned

Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers:

	XBT		NINTO
Number of orders	30		2
Number of parts per order	700		2,200
Sales returns:
Number of returns	4		10
Number of units returned	40		50
Number of sales calls	17		13
Miles per delivery	10		20
Shipping terms	FOB, Factory		FOB, Destination

What is Nerrod's total customer batch-level cost applicable to Ninto?

Multiple Choice

• $1,620.

• $3,000.

• $3,120.

• $7,000.

• $1,710.

Answer rating: 100% (QA)

A B D E F Nerrod A B CAB Activity cost pool Order Processing Deliveries ... View the full answer