1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. NonJIT Sales (in units) Sales Allocation Ordering costs Selling costs Service costs JIT Total S__ S__ 2. Conceptual Connection: Calculate the customer cost per distributor type using activity-based cost assignments. JIT NonJIT S S S S S S S S-- S S__

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. Calculate the total revenues per distributor category, and assign the customer costs to each
distributor type by using revenues as the allocation base. Selling price for one unit is $150.
NonJIT
Sales (in units)
Sales
Allocation
Ordering costs
Selling costs
Service costs
JIT
Total
S__
S__
2. Conceptual Connection: Calculate the customer cost per distributor type using activity-based cost
assignments.
JIT NonJIT
$
$
S
$
$
$
$
---
$
S--
$__
Transcribed Image Text:1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. NonJIT Sales (in units) Sales Allocation Ordering costs Selling costs Service costs JIT Total S__ S__ 2. Conceptual Connection: Calculate the customer cost per distributor type using activity-based cost assignments. JIT NonJIT $ $ S $ $ $ $ --- $ S-- $__
Sales orders
Sales calls
Service calls
Average order size
Manufacturing cost/unit
Customer costs:
Processing sales orders
Selling goods
Servicing goods
Total
JIT
NonJIT
Distributors Distributors
700
70
350
750
$125
$3,080,000
1,120,000
1,050,000
$5,250,000
70
70
175
7,500
$125
Transcribed Image Text:Sales orders Sales calls Service calls Average order size Manufacturing cost/unit Customer costs: Processing sales orders Selling goods Servicing goods Total JIT NonJIT Distributors Distributors 700 70 350 750 $125 $3,080,000 1,120,000 1,050,000 $5,250,000 70 70 175 7,500 $125
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