Grouse Inc. is a small distributor of mechanical pencils. Grouse identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the activity and cost pool details.) Data table Activity 1. Placing and paying for orders of pencil packs 2. Receiving and storage 3. Shipping of pencil packs to retailers Cost Driver Number of orders Loads moved For 2019, Grouse buys 250,000 pencil packs at an average cost of $5 per pack and sells them to retailers at an average price of $9 per pack. Assume Grouse has no fixed costs and no inventories. Calculate Grouse's operating income for 2019. Number of shipments Quantity of Cost per Unit of Cost Cost Driver Driver 600 4,000 $60 per load 1,500 $100 per order $90 per shipment

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.)
Transcribed Image Text:Begin by calculating the operating income. Then, calculate the per unit amounts. (Round the per unit amounts to the nearest cent.)
Grouse Inc. is a small distributor of mechanical pencils. Grouse
identifies its three major activities and cost pools as ordering, receiving
and storage, and shipping, and it reports the following details for 2019:
(Click the icon to view the activity and cost pool details.)
Data table
Activity
1. Placing and paying for orders of
pencil packs
2. Receiving and storage
3. Shipping of pencil packs to
retailers
C
Cost Driver
For 2019, Grouse buys 250,000 pencil packs at an average cost
of $5 per pack and sells them to retailers at an average price of
$9 per pack. Assume Grouse has no fixed costs and no
inventories.
Calculate Grouse's operating income for 2019.
Number of orders
Loads moved
Number of shipments
Quantity of Cost per Unit of Cost
Cost Driver
Driver
600
4,000
1,500
$100 per order
$60 per load
$90 per shipment
X
Transcribed Image Text:Grouse Inc. is a small distributor of mechanical pencils. Grouse identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the activity and cost pool details.) Data table Activity 1. Placing and paying for orders of pencil packs 2. Receiving and storage 3. Shipping of pencil packs to retailers C Cost Driver For 2019, Grouse buys 250,000 pencil packs at an average cost of $5 per pack and sells them to retailers at an average price of $9 per pack. Assume Grouse has no fixed costs and no inventories. Calculate Grouse's operating income for 2019. Number of orders Loads moved Number of shipments Quantity of Cost per Unit of Cost Cost Driver Driver 600 4,000 1,500 $100 per order $60 per load $90 per shipment X
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