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Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $126,000 for purchasing support should be assigned to the individual vendors from the information given as follows: Units purchased Purchase orders (annual) Vendor A Vendor B 108,000 216,000 14 Number of shipments received 28 56 112 What is the amount of the purchasing costs that should be allocated to Vendor B, assuming Rogers uses number of shipments received to compute activity-based costs? A. $42,000 B. $25,200 C. $84,000 D. $100,800

Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $126,000 for purchasing support should be assigned to the individual vendors from the information given as follows: Units purchased Purchase orders (annual) Vendor A Vendor B 108,000 216,000 14 Number of shipments received 28 56 112 What is the amount of the purchasing costs that should be allocated to Vendor B, assuming Rogers uses number of shipments received to compute activity-based costs? A. $42,000 B. $25,200 C. $84,000 D. $100,800

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 18E
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Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $126,000 for purchasing support should be assigned to the individual vendors from the information given as follows: Units purchased Purchase orders (annual) Vendor A Vendor B 108,000 216,000 14 Number of shipments received 28 56 112 What is the amount of the purchasing costs that should be allocated to Vendor B, assuming Rogers uses number of shipments received to compute activity-based costs? A. $42,000 B. $25,200 C. $84,000 D. $100,800
Transcribed Image Text:Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $126,000 for purchasing support should be assigned to the individual vendors from the information given as follows: Units purchased Purchase orders (annual) Vendor A Vendor B 108,000 216,000 14 Number of shipments received 28 56 112 What is the amount of the purchasing costs that should be allocated to Vendor B, assuming Rogers uses number of shipments received to compute activity-based costs? A. $42,000 B. $25,200 C. $84,000 D. $100,800
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