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Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Activity Sales calls Order processing Deliveries Jerry, Incorporated 3 3,000 Sales returns Sales salary 1 60 11 Kate Company 40 180 Colleen sells its products at $180 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: 3 120 Cost Driver and Rate $700 per visit 210 per order 310 per order 200 per return and $3 per unit returned 92,000 per month 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.

Number of orders Units per order Sales returns: Number of returns Total units returned Number of sales calls Activity Sales calls Order processing Deliveries Jerry, Incorporated 3 3,000 Sales returns Sales salary 1 60 11 Kate Company 40 180 Colleen sells its products at $180 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: 3 120 Cost Driver and Rate $700 per visit 210 per order 310 per order 200 per return and $3 per unit returned 92,000 per month 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.

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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k nces 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. Complete this question by entering your answers in the tabs below. 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. Customer unit level costs: Sales returns Customer batch level costs: Customer sustaining costs: Total Required 1 Required 2 Jerry, Incorporated Net sales $ Operating income (loss) Operating margin (loss) 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. Show Transcribed Tout Complete this question by entering your answers in the tabs below. Compare the profitability of these two customers. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21.34%).) Jerry, Incorporated 0 0 Kate Company 0 % S Kate Company < Required 1 0 0 0 % Required 2 >
Transcribed Image Text:k nces 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. Complete this question by entering your answers in the tabs below. 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. Customer unit level costs: Sales returns Customer batch level costs: Customer sustaining costs: Total Required 1 Required 2 Jerry, Incorporated Net sales $ Operating income (loss) Operating margin (loss) 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. Show Transcribed Tout Complete this question by entering your answers in the tabs below. Compare the profitability of these two customers. (Loss amounts should be indicated by a minus sign. Round operating margin (loss) to 2 decimal places (i.e. 0.2134 should be entered as 21.34%).) Jerry, Incorporated 0 0 Kate Company 0 % S Kate Company < Required 1 0 0 0 % Required 2 >
Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers, Jerry, Incorporated 3 3,000 Number of orders Units per order Sales returnst Number of returns Total units returned Number of sales calls Activity Sales calls Order processing Deliveries Sales returns Sales salary 1 Colleen sells its products at $180 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: 60 11 Required 1 Required 2 Kate Company 40 180 $700 per visit 210 per order 3 120 6 Cost Driver and Rate 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. 310 per order 200 per return and $3 per unit returned 92,000 per month Complete this question by entering your answers in the tabs below. 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.
Transcribed Image Text:Colleen Company has gathered the following data pertaining to activities it performed for two of its major customers, Jerry, Incorporated 3 3,000 Number of orders Units per order Sales returnst Number of returns Total units returned Number of sales calls Activity Sales calls Order processing Deliveries Sales returns Sales salary 1 Colleen sells its products at $180 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: 60 11 Required 1 Required 2 Kate Company 40 180 $700 per visit 210 per order 3 120 6 Cost Driver and Rate 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. 310 per order 200 per return and $3 per unit returned 92,000 per month Complete this question by entering your answers in the tabs below. 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.
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