Suppose that you own a freight forwarder company. One of your customers “ELAR A.Ş.” called you on JANUARY 2022 and asked for the freight offer for the transportation of five TEU (your cost object) products from location X to location Y. You are supposed to give a reasonable freight offer to your customer. Your profit margin is 25 %. First find the cost, then add 25 % profit margin to find the customer price. Use job costing and normal costing. a) Choose Location X and Y, explain your route and transportation modes. Explain whether the transportation is door to door or not. You can use one, two or three modes of transportation to carry out this transaction. b) Identify and LIST the direct costs of the job. Calculate the total direct costs of the job. c) Budget and LIST the indirect costs of your company for all jobs in 2022. Calculate the total indirect costs of your company for 2022.
Suppose that you own a freight forwarder company. One of your customers “ELAR A.Ş.” called you on JANUARY 2022 and asked for the freight offer for the transportation of five TEU (your cost object) products from location X to location Y.
You are supposed to give a reasonable freight offer to your customer. Your profit margin is 25 %. First find the cost, then add 25 % profit margin to find the customer price. Use
a) Choose Location X and Y, explain your route and transportation modes. Explain whether the transportation is door to door or not. You can use one, two or three modes of transportation to carry out this transaction.
b) Identify and LIST the direct costs of the job. Calculate the total direct costs of the job.
c) Budget and LIST the indirect costs of your company for all jobs in 2022. Calculate the total indirect costs of your company for 2022.
d) Select your allocation base and compute the allocation rate per unit. You may use multiple allocation bases.
e) Compute the indirect allocated cost of “ELAR A.Ş.” job.
f) Compute the total cost of the job.
g) What is your price (freight offer) to ELAR A.Ş.?
h) Refer to your answer in question c. If you used “ACTUAL costing” in your company, what would change? What are the advantages and disadvantages of “ACTUAL costing”?
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