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Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Jerry, Incorporated 6 3,000 Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Activity Sales calls Order processing Deliveries Sales returns Sales salary Colleen sells its products at $230 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly a no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past months, the firm has determined the following activity costs: 58 15 Customer unit level costs: Sales returns Customer batch level costs: Order processing Sales returns Delivery Customer sustaining costs: Sales calls Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the cost for Colleen Company to service Jerry, Incorporated and Kate Company. 2. Compare the profitability of these two customers. Total Kate Company 68 468 Complete this question by entering your answers in the tabs below. 3 198 4 $888 per visit 288 per order 448 per order 248 per return and $3 per unit returned 83,000 per month Required 1 Required 2 Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. Kate Company Jerry. Incorporated S Cost Driver and Rate $ 0

Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Jerry, Incorporated 6 3,000 Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Activity Sales calls Order processing Deliveries Sales returns Sales salary Colleen sells its products at $230 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly a no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past months, the firm has determined the following activity costs: 58 15 Customer unit level costs: Sales returns Customer batch level costs: Order processing Sales returns Delivery Customer sustaining costs: Sales calls Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the cost for Colleen Company to service Jerry, Incorporated and Kate Company. 2. Compare the profitability of these two customers. Total Kate Company 68 468 Complete this question by entering your answers in the tabs below. 3 198 4 $888 per visit 288 per order 448 per order 248 per return and $3 per unit returned 83,000 per month Required 1 Required 2 Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. Kate Company Jerry. Incorporated S Cost Driver and Rate $ 0

FINANCIAL ACCOUNTING
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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Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Jerry, Incorporated 6 3,000 Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Activity Sales calls Order processing Deliveries Sales returns Sales salary Colleen sells its products at $230 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: 58 15 Customer unit level costs: Sales returns Customer batch level costs: Order processing Sales returns Delivery Customer sustaining costs: Sales calls Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. 2. Compare the profitability of these two customers. Total Kate Company 68 468 Complete this question by entering your answers in the tabs below. 3 198 4 $888 per visit 288 per order 448 per order 248 per return and $3 per unit returned 83,000 per month Required 1 Required 2 Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. Kate Company Jerry. Incorporated S Cost Driver and Rate 0 $ < Required 1 0 Required 2 >
Transcribed Image Text:Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers. Jerry, Incorporated 6 3,000 Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Activity Sales calls Order processing Deliveries Sales returns Sales salary Colleen sells its products at $230 per unit. The firm's gross margin ratio is 25%. Both Jerry and Kate pay their accounts promptly and no accounts receivable is over 30 days. After using business analytics software to carefully analyze the operating data for the past 30 months, the firm has determined the following activity costs: 58 15 Customer unit level costs: Sales returns Customer batch level costs: Order processing Sales returns Delivery Customer sustaining costs: Sales calls Required: 1. Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. 2. Compare the profitability of these two customers. Total Kate Company 68 468 Complete this question by entering your answers in the tabs below. 3 198 4 $888 per visit 288 per order 448 per order 248 per return and $3 per unit returned 83,000 per month Required 1 Required 2 Using customers as the cost objects, classify the activity costs into cost categories (unit-level, batch-level, etc.) and compute the total cost for Colleen Company to service Jerry, Incorporated and Kate Company. Kate Company Jerry. Incorporated S Cost Driver and Rate 0 $ < Required 1 0 Required 2 >
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