Please do not give solution in image format thanku Activity Based Customer-Driven CostsSuppose that Stillwater Designs has two classes of distributors: 3 distributors and non-IIT distributors. The 3T distributor places small, frequent orders, and the non-IT distributar tends to place largerless frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarterSales ordersSales callsService callsAverage order sizeManufacturing cost/unitCustomer costsProcessing sales ordersSelling goodsServicing goodsTotalSales (in units)SalesAllocationNon-JITJITDistributors Distributors31170070350750$125$3,280,0001,120,0001,050,000$5,450,0001. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Roundcalculations to the nearest dollar.70Non-JIT701757,500$125 2. Conceptual Connection: Calculate the customer cost per distributor type using activity-based cost assignments. Round the interim calculations to the nearest dollar.Ordering costsSelling costsService coutsTotalJITper unitNon-JITFor non-JIT distributors by how much can the price be decreased without affecting customer profitability? Round your answer to the nearest cent.

Activity-Based Costing:— Under this method, overhead is allocated between products on the basis of…

Suppose that Stillwater Designs has two classes of distributors: 3T distributors and non-31T distributors. The JT distributor places small, frequent orders, and the non-JIT distributar tends to place largem less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter Sales orders Sales calls Service calls Average order size Manufacturing cost/unit customer.contai Processing sales orders Selling goods Servicing goods Total Sales (in units) Sales Aliccation JIT Non-JIT Distributors Distributors 700 70 350 750 JIT $125 $3,280,000 1,120,000 1,050,000 $5,450,000 70 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Round calculations to the nearest dollar. 70 Non-JIT 175 7,500 $125 100€

Suppose that Stillwater Designs has two classes of distributors: 3T distributors and non-31T distributors. The JT distributor places small, frequent orders, and the non-JIT distributar tends to place largem less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter Sales orders Sales calls Service calls Average order size Manufacturing cost/unit customer.contai Processing sales orders Selling goods Servicing goods Total Sales (in units) Sales Aliccation JIT Non-JIT Distributors Distributors 700 70 350 750 JIT $125 $3,280,000 1,120,000 1,050,000 $5,450,000 70 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Round calculations to the nearest dollar. 70 Non-JIT 175 7,500 $125 100€

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter11: Strategic Cost Management

Section: Chapter Questions

Problem 11E: Assign the customer-related activity costs to each customer type using activity rates. Now calculate...

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Activity-Based Customer-Driven Costs Suppose that Stillwater Designs 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 are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JITDistributors Non-JITDistributors Sales orders 1,000 100 Sales calls 70 70 Service calls 350 175 Average order size 550 5,500 Manufacturing cost/unit $125 $125 Customer costs: Processing sales orders $3,430,000 Selling goods 1,120,000 Servicing goods 1,050,000 Total $5,600,000 Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Round…
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