**Service Costs**(Blank fields for dollar values)**Total**(Blank field for dollar value)"For non JIT distributors by how much can the price be decreased without affecting customer profitability? Round your answer to the nearest cent."(Blank field for dollar value) **per unit** **Activity-Based Customer-Driven Costs**Suppose that Stillwater Designs has two classes of distributors: JIT (Just-In-Time) distributors and non-JIT distributors. The JIT distributor places small, frequent orders, while the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter:| | JIT Distributors | Non-JIT Distributors ||----------------------|-----------------|----------------------|| Sales orders | 1,000 | 100 || Sales calls | 70 | 70 || Service calls | 350 | 175 || Average order size | 650 | 6,500 || Manufacturing cost/unit | $125 | $125 |**Customer Costs:**- Processing sales orders: $3,230,000- Selling goods: $1,120,000- Servicing goods: $1,050,000- **Total: $5,400,000**### Required: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. Round calculations to the nearest dollar. - JIT - Sales (in units): [Input Box] - Sales: [Input Box] - Allocation: [Input Box] - Non-JIT - Sales (in units): [Input Box] - Sales: [Input Box] - Allocation: [Input Box]2. **Conceptual Connection**: Calculate the customer cost per distributor type using activity-based cost assignments. Round the interim calculations to the nearest dollar. - JIT - Ordering costs: [Input Box] - Selling costs: [Input Box] - Non-JIT - Ordering costs: [Input Box] - Selling costs: [Input Box]

Manufacturing overhead is allocated using activity-based costing methods, which divide indirect…

Answered: Activity-Based Customer-Driven Costs…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below: Projected revenue Unit-level costs Batch-level costs Product-level costs Facility-level costs What is the differential revenue for this decision? Multiple Choice O $110.000 $85,000 $205,000 Alternative A $205,000 39,000 26,500 29,000 24,000 $290,000 Alternative B $290,000 50,000 38,000 31,000 26,500
Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Product Selling Priceper Unit Variable Costper Unit Snowboards $340 $150 Skis $380 $200 Poles $60 $30 Their sales mix is reflected in the ratio 7:3:2. If annual fixed costs shared by the three products are $250,900. Determine the break-even point in sales dollars. Break-even point $fill in the blank 1
Total Cost Method of Product Pricing Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 3,500 units of cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $ 77 Factory overhead $134,700 Direct labor 35 Selling and administrative expenses 47,300 Factory overhead 23 Selling and administrative expenses 19 Total variable cost per unit $154 Smart Stream desires a profit equal to a 14% return on invested assets of $422,300. a. Determine the total costs and the total cost amount per unit for the production and sale of 3,500 cellular phones. Round the cost per unit to two decimal places. Total cost Total cost amount per unit b. Determine the total cost markup percentage for cellular phones. Round your answer to two decimal places. c. Determine the selling price of cellular phones. Round to the nearest cent. per cellular phone
What is the break-even point in sales units? (see attached)
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,091 14,781 April 2,676 9,929 May 2,812 11,845 June 3,520 17,889 a.$0.49 b.$0.53 c.$0.11 d.$1.17
Atlantic Company sells a product with a break-even point of 6,148 sales units. The variable cost is $71 per unit, and fixed costs are $178,292. Determine the following:
1Travel agency reported that last week they had the following trips booked. Day Costs Trips booked Monday 800 1200 Tuesday 600 1300 Wednesday 500 1400 Thursday 1000 1600 Friday 400 900 Saturday 300 800 Sunday 200 600 Calculate the Variable cost per unit?
REQUIRED Calculate the number of orders that should be placed based on the quantity that will keep the cost of placing the orders and the holding costs at a minimum. INFORMATION The following information was supplied by KL Suppliers for the only product that it sells: Monthly demand Unit cost Fixed cost per order Carrying cost per unit EOQ 300 units R20 R25 10% of the unit cost 300 units
Nutterco, Inc., produces two types of nut butter: peanut butter and cashew butter. Of the two,peanut butter is the more popular. Cashew butter is a specialty line using smaller jars and fewerjars per case. Data concerning the two products follow: Annual overhead costs are listed below. These costs are classified as fixed or variable with respect to the appropriate activity driver. Required:1. Prepare a traditional segmented income statement, using a unit-level overhead rate based ondirect labor hours. Using this approach, determine whether the cashew butter product lineshould be kept or dropped.2. Prepare an activity-based segmented income statement. Repeat the keep-or-drop analysisusing an ABC approach.
Vala
Variable Cost Concept of Product Pricing Smart Stream Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4,500 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 90 per unit Factory overhead $223,800 Direct labor 41 Selling and admin. exp. 78,600 Factory overhead 27 Selling and admin. exp. 22 Total $180 per unit Smart Stream wants a profit equal to a 15% rate of return on invested assets of $630,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 4,500 units of cellular phones. Round to two decimal places. Total variable costs $fill in the blank 1 Variable cost amount per unit $fill in the blank 2 b. Determine the variable cost markup percentage for cellular phones.fill in the blank 3 % c. Determine the selling price of cellular phones. Round to…

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