Question: Please help!!! Activity-Based Customer Casting Sleepeze Company produces mattresses for 20 retail outlets of the 20 retail outlets, 19 are small, separately owned furniture stores

 Please help!!! Activity-Based Customer Casting Sleepeze Company produces mattresses for 20

Please help!!! retail outlets of the 20 retail outlets, 19 are small, separately owned

Activity-Based Customer Casting Sleepeze Company produces mattresses for 20 retail outlets of the 20 retail outlets, 19 are small, separately owned furniture stores and one is a retail chain. The retail chain buys 60% of the mattresses produced. The 19 smaller customers purchase mattresses in approximately equal quantities where the orders are about the same size Data concerning Sleepeze's customer activity are as follows: 18 882 Large Retailer Smaller Retailers Units purchased 108,000 72,000 Orders placed 36 3,600 Number of sales calls Manufacturing costs 543,200,000 $28,800,000 Order Nilling costs allocated $1,527, 120 51,010,080 Sales force costs allocated $763,000 $522,000 unted on als volume units) Currently, customer-driven costs are assigned to customers based on units sold, a unit-level driver. Required: Assign costs to customers by using an ABC approach. Hound your answers and all intermediate calculations to the nearest dostar Order filling rate 700 per order Selling call rate 1,450 per sales call Cost assignment Large retailer Smaller retailers

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!