Hidden Valley Company produces precision components. Hidden Valley has six customers, one of which accounts for 40 percent of the sales, with the remaining five accounting for the rest of the sales. The five smaller customers purchase components in roughly equal quantities. Orders placed by the smaller customers are about the same size. Data concerning Hidden Valley 's customer activity follow. Large Customers - Units purchased 200,000, Orders placed 20, Number of sales calls 25, Manufacturing cost $600,000. Five Small Customers - Units purchased 300,000, Orders placed 380, Number of sales calls 225, Manufacturing cost $900,000. Marketing and distribution costs for Hidden Valley Company consist of order filling - $200,000 and sales-force costs of $285,000. Using an activity based costing approach determine the average amount of ORDER-FILLING costs assigned to a small customer. (Round to the nearest $1.00)
Hidden Valley Company produces precision components. Hidden Valley has six customers, one of which accounts for 40 percent of the sales, with the remaining five accounting for the rest of the sales. The five smaller customers purchase components in roughly equal quantities. Orders placed by the smaller customers are about the same size. Data concerning Hidden Valley 's customer activity follow. Large Customers - Units purchased 200,000, Orders placed 20, Number of sales calls 25,
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