please answer part f. thanks

question f pls.

please answer f.

Mindanao, Inc., a distributor of pharmaceutical products, operates at capacity and has three main market segments:

i. General supermarket chains

ii. Drugstore chains

iii. Mo-and-pop single-store pharmacies.

Mindanao, 2021

General Supermarket Chains

$

Drugstore Chains

$

Mo-and-pop single-stores

$

Total for Mindanao

$

Revenues

Cost of goods sold Gross margin

Other operating costs Operating income

3,704,000 3,612,000 92,000

3,145,000 2,990,000 155,000

1,988,000 1,804,000 184,000

8,837,000 8,406,000 431,000 313,075 117,925

For many years, Mindanao has used gross margin percentage to evaluate the relative profitability of its market segments. But John recently attended a seminar on activity-based costing and is considering using it at Mindanao to analyse and allocate other operating costs. He meets with all the key managers and several of his operations and sales staff, and they agree that there are five key activities that drive other operating costs at Mindanao.

Activity area

Order processing

Line-item processing

Delivering to stores

Cartons shipped to store

Stocking of customer store shelves

Cost driver

Number of customer purchase orders Number of line items ordered by customers Number of store deliveries

Number of cartons shipped

Hours of shelf stocking

Each customer order consists of one or more line items. A line item represents a single product (such as Extra-Strength Tylenol Tablets). Each product line item is delivered in one or more separate cartons. Each store delivery entails the delivery of one or more cartons of products to a customer. Mindanaos staff stacks cartons directly onto display shelves in customers stores. Currently, there is no additional charge to the customer for shelf stocking and not all customers use Mindanao for this activity. The level of each activity in the three market segments and the total cost incurred for each activity in 2021 is as follows:

Activity-based cost data, 2021

Activity

Order processed (number) Line-items ordered (number) Store deliveries made (number) Cartons shipped to stores

Shelf stocking (hours)

Required:

Mindanao

Activity Level

General Drugstore Supermarket Chains Chains

200 500 2,100 4,800 110 280 34,000 23,000 310 210

Mo-and-pop single-stores

1,800 15,600 990 23,000 95

Total costs of activity in 2021

$ 87,500 67,500 67,620 80,000 10,455

313,075

Undertake a review of literature referring to at least 4 journal articles to discuss managements involvement and decisions in Activity-Based Costing.

b. Discuss how Activity-Based Costing is distinguished from other costing systems.

c. Calculate the 2021 gross margin percentage for each of Mindanaos three market segments.

d. Compute the cost driver rates for each of the five activity areas.

e. Use the activity-based costing information to allocate the $313,075 of other operating costs

to each of the market segments. Compute the operating income for each market segment.

f. Analyse and comment on the results, comparing profitability in (c) and (e) above. What new

insights are available with the activity-based costing information?

Mindanao, 2021 For many years, Mindanao has used gross margin pereentage to evaluate the relative profitability of its market segments. But John recently attended a seminar on activity-based costing and is considering using it at Mindanao to analyse and allocate "other operating costs". He meets with all the key managers and several of his operations and sales staft, and they agree that there are five key activities that drive other operating costs at Mindanao. Each customer order consists of one or more line items. A line item represents a single product (such as Extra-Strength Tylenol Tablets). Each product lime item is delivered in one or more separate cartons. Each store delivery entails the delivery of one or more cartons of products to a customer. Mindanao's staff stacks cartons directly onto display shelves in customers' stores. Currently, there is no additional charge to the customer for shelf stocking and not all customers use Mindanao for this activity. The level of each activity in the three market seyments and the total cost incurred for each activity in 2021 is as follows: Each customer order consists of one or more line items. A line item represents a single product (such as Extra-Strength Tylenol Tablets). Each product line item is delivered in one or more separate cartons. Each store delivery entails the delivery of one or more cartons of products to a customer. Mindanao's staff stacks cartons directly onto display shelves in customers' stores. Currently, there is no additional charge to the customer for shelf stocking and not all customers use Mindanao for this activity. The level of each activity in the three market segments and the total cost incurred for each activity in 2021 is as follows: Required: a. Undertake a review of literature referring to at least 4 journal articles to discuss management's involvement and decisions in Activity-Based Costing. b. Discuss how Activity-Based Costing is distinguished from other costing systems. c. Calculate the 2021 gross margin percentage for each of Mindanao's three market segments. d. Compute the cost driver rates for each of the five activity areas. e. Use the activity-based costing information to allocate the $313,075 of "other operating costs" to each of the market segments. Compute the operating income for each market segment. f. Analyse and comment on the results, comparing profitability in (c) and (e) above. What new insights are available with the activity-based costing information? Mindana@, 2021 For many years, Mindanao has used gross margin percentage to evaluate the relative profitability of its market segments. But John recently attended a seminar on activity-based costing and is considering using it at Mindanao to analyse and allocate "other operating costs". He meets with all the key managers and several of his operations and sales staff, and they agree that there are five key activities that drive other operating costs at Mindanao. Each customer order consists of one or more line items. A line item represents a single product (such as Extra-Strength Tylenol Tablets). Each product line item is delivered in one or more separate cartons. Each store delivery entails the delivery of one or more cartons of products to a customer. Mindanao's staff stacks cartons directly onto display shelves in customers' stores. Currently, there is no additional charge to the customer for shelf stocking and not all customers use Mindanao for this activity. The level of each activity in the three market segments and the total cost incurred for each activity in 2021 is as follows: Required: a. Undertake a review of literature referring to at least 4 journal articles to discuss management's involvement and decisions in Activity-Based Costing. b. Discuss how Activity-Based Costing is distinguished from other costing systems. c. Calculate the 2021 gross margin percentage for each of Mindanao's three market segments. d. Compute the cost driver rates for each of the five activity areas. e. Use the activity-based costing information to allocate the $313,075 of "other operuting costs" to each of the market segments. Compute the operating income for each market segment. f. Analyse and comment on the results, comparing profitability in (c) and (c) above. What new insights are available with the activity-based costing information