Question Content Area Wiley Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer-related activities and costs for the previous quarter are as follows: Activity Sales orders Sales calls Service calls Average order size Manufacturing cost/unit JIT Distributors Non-JIT Distributors 500 30 200 90 $50 Line Item Description Amount Processing sales orders $160,000 155,000 195,000 Selling goods Servicing goods 30 30 90 1,400 $50 Calculate the activity rate for processing sales orders. (Round answer to two decimal places.) a. $301.89 per sales order b. $275.76 per sales order c. $525.33 per sales order d. $330.09 per sales order
Question Content Area Wiley Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer-related activities and costs for the previous quarter are as follows: Activity Sales orders Sales calls Service calls Average order size Manufacturing cost/unit JIT Distributors Non-JIT Distributors 500 30 200 90 $50 Line Item Description Amount Processing sales orders $160,000 155,000 195,000 Selling goods Servicing goods 30 30 90 1,400 $50 Calculate the activity rate for processing sales orders. (Round answer to two decimal places.) a. $301.89 per sales order b. $275.76 per sales order c. $525.33 per sales order d. $330.09 per sales order
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Question Content Area
Wiley Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT
distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders.
Both types of distributors purchase the same product. The customer-related activities and costs for the
previous quarter are as follows:
Activity
Sales orders
Sales calls
Service calls
Average order size
Manufacturing cost/unit
JIT Distributors Non-JIT Distributors
500
30
200
90
$50
Line Item Description Amount
Processing sales orders $160,000
155,000
195,000
Selling goods
Servicing goods
30
30
90
1,400
$50
Calculate the activity rate for processing sales orders. (Round answer to two decimal places.)
a. $301.89 per sales order
b. $275.76 per sales order
c. $525.33 per sales order
d. $330.09 per sales order
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