Data tableRevenues at list pricesDiscounts from list pricesCost of goods soldDelivery costsOrder processing costsCost of sales visitWholesale CustomersWest RegionWholesaler740,000 $51,600590,00029,10012,61012,400PrintEast RegionWholesaler1,250,000 $79,2001,050,00023,43016,93010,310DoneRetail CustomersStock Inc.340,000 $20,400301,00016,5509,4009,300Darby Corp300,0006,100200,00014,2007,3008,100XReferenceRevenues at list pricePrice discountsRevenues at actual pricesCost of goods soldGross marginCustomer-level operating costs:DeliveryOrder processingSales visitsTotal cust-level oper. costsCustomer-level operating incomeWholesaleWest RegionWholesaler$740,000 $51,600688,400590,00098,40029,10012,61012,40054,11044,290 $East RegionWholesaler1,250,000 $79,2001,170,8001,050,000120,80023,43016,93010,31050,67070,130 $StockInc.Retail340,000 $20,400319,600301,00018,60016,5509,4009,30035,250(16,650) $DarbyCorpI300,0006,100293,900200,00093,90014,2007,3008,10029,60064,300X Kling Inc. has only two retail and two wholesale customers. Information relating to each customer for 2020 follows:(Click the icon to view the customer-level operating income.)(Click the icon to view the data.)Kling's annual distribution-channel costs are $32,000 for wholesale customers and $13,000 for retail customers. The company's annual corporate costs are $45,000. There is no cause-and-effect or benefits-received relationshipbetween any cost-allocation base and corporate-sustaining costs. That is, Kling could save corporate-sustaining costs only if the company completely shuts down.RequirementPrepare a customer-cost hierarchy report.First, determine the formula and then enter the amounts to calculate the total customer costs for each customer. (Abbreviations used: W. = West; E. = East; Dist. = Distribution; oper. = operating; inc. == income.)W. RegionE. RegionStock Inc.Darby Corp+++|| ||Total customer-level costs

Every company incur some specific cost related to the product which is sold to some specific…

Kling Inc. has only two retail and two wholesale customers. Information relating to each customer for 2020 follows: (Click the icon to view the customer-level operating income.) (Click the icon to view the data.) Kling's annual distribution-channel costs are $32,000 for wholesale customers and $13,000 for retail customers. The company's annual corporate costs are $45,000. There is no cause-and-effect or benefits-received relations between any cost-allocation base and corporate-sustaining costs. That is, Kling could save corporate-sustaining costs only if the company completely shuts down. Requirement Prepare a customer-cost hierarchy report. First, determine the formula and then enter the amounts to calculate the total customer costs for each customer. (Abbreviations used: W. = West; E. = East; Dist. = Distribution; oper. = operating; inc. = income.) Total customer-level costs W. Region E. Region Stock Inc. + + + = = =

Kling Inc. has only two retail and two wholesale customers. Information relating to each customer for 2020 follows: (Click the icon to view the customer-level operating income.) (Click the icon to view the data.) Kling's annual distribution-channel costs are $32,000 for wholesale customers and $13,000 for retail customers. The company's annual corporate costs are $45,000. There is no cause-and-effect or benefits-received relations between any cost-allocation base and corporate-sustaining costs. That is, Kling could save corporate-sustaining costs only if the company completely shuts down. Requirement Prepare a customer-cost hierarchy report. First, determine the formula and then enter the amounts to calculate the total customer costs for each customer. (Abbreviations used: W. = West; E. = East; Dist. = Distribution; oper. = operating; inc. = income.) Total customer-level costs W. Region E. Region Stock Inc. + + + = = =

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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