Related questions
Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity-based costing methods and identified four activities. Data on these activities follow.
Cost Driver Volume
Activity Cost Driver Cost Driver Volume
Processing order Number of orders $ 65,000 5,000 orders
Loading truck Number of items 342,000 100,000 items
Delivering merchandise Number of orders 80,000 5,000 orders
Processing invoice Number of invoices 64,000 4,000 invoices
Total
Two of Marvin’s customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow.
City Diner Le Chien Chaud
Order value $85,000 $95,000
Number of orders 65 270
Number of items 850 1,500
Number of invoices 13 170
Required:
- What would the delivery charge for each customer be under the current policy of 10 percent of order value?
Delivery Charge
Per Customer
City Diner ________________
Le Chien Chaud ________________
- Calculate the cost of each activity for both restaurants to determine the total activity-based costing estimate of the cost of delivering to each customer. (Do not round intermediate calculations.)
City Diner Le Chien Chaud
Processing order ________ ____________
Loading truck _________ _____________
Delivering merchandise __________ _____________
Processing invoice __________ _____________
Total cost $ 0 $ 0
Step by stepSolved in 3 steps with 4 images
- Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has an activity rate of 20 per sales order, and the customer return activity has an activity rate of 100 per return. Jungle Junior sold 2,500 swing sets, which consisted of 750 orders and 80 returns. Determine (A) the total and (B) the per-unit sales order processing and customer return activity cost for swing sets.arrow_forwardThayne Company has 30 clerks that work in its Accounts Payable Department. A study revealed the following activities and the relative time demanded by each activity: Required: Classify the four activities as value-added or non-value-added, and calculate the clerical cost of each activity. For non-value-added activities, indicate why they are non-value-added.arrow_forwardMarvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity- based costing methods and identified four activities. Data on these activities follow. Activity Processing order Loading truck Delivering merchandise Processing invoice Total overhead Order value Number of orders Number of items Number of invoices Cost Driver Number of orders Number of items Number of orders Number of invoices Two of Marvin's customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow. City Diner Le Chien Chaud $75,000 $90,000 110 1,500 150 Required A Cost Driver Volume 52 600 12 Cost $ 75,000 150,000 90,000 72,000 $387,000 Required B City Diner Le Chien Chaud Driver Volume 5,000 orders 100,000 items Required: a. What would the delivery charge for each…arrow_forward
- Please help with the attached questionarrow_forwardRupert’s Appliance Warehouse (RAW) delivers appliances to retailers throughout the city. The firm adds 6 percent to the cost of the appliances to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. The finance team at RAW has analyzed the delivery service using activity-based costing methods and identified four activities. Data on these activities follow: Activity Cost Driver Activity Cost Cost Driver Volume Processing order Number of orders $ 84,000 6,000 orders Loading truck Number of items 290,000 145,000 items Delivering order Number of orders 102,000 6,000 orders Billing Number of invoices 85,000 5,000 invoices Total overhead $ 561,000 Two of Rupert's customers are McLean Designs and Neveux Appliances. Data for orders and deliveries to these two customers follow: McLean Designs Neveux Appliances Order value (total) $ 86,000 $ 96,000 Number of orders 66 236 Total number of items 900 1,600 Number of invoices 14 180…arrow_forwardMarvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity-based costing methods and identified four activities. Data on these activities follow. Cost Driver Volume Activity Cost Driver Cost Driver Volume Processing order Number of orders $ 42,000 3,000 orders Loading truck Number of items 243,000 135,000 items Delivering merchandise Number of orders 51,000 3,000 orders Processing invoice Number of invoices 34,000 2,000 invoices Total overhead $ 370,000 Two of Marvin's customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow. City Diner Le Chien Chaud Order value $ 76,000 $ 86,000 Number of orders 56 180 Number of items 400 2,200…arrow_forward
- Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity-based costing methods and identified four activities. Data on these activities follow. Cost Driver Volume Activity Cost Driver Cost Driver Volume Processing order Number of orders $ 126,000 9,000 orders Loading truck Number of items 340,000 200,000 items Delivering merchandise Number of orders 153,000 9,000 orders Processing invoice Number of invoices 136,000 8,000 invoices Total overhead $ 755,000 Two of Marvin's customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow. City Diner Le Chien Chaud Order value $ 89,000 $ 99,000 Number of orders 69 310 Number of items 600 1,900…arrow_forwardManjiarrow_forwardRupert’s Appliance Warehouse (RAW) delivers appliances to retailers throughout the city. The firm adds 6 percent to the cost of the appliances to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. The finance team at RAW has analyzed the delivery service using activity-based costing methods and identified four activities. Data on these activities follow: Activity Cost Driver Activity Cost Cost Driver Volume Processing order Number of orders $ 70,000 5,000 orders Loading truck Number of items 105,000 75,000 items Delivering order Number of orders 85,000 5,000 orders Billing Number of invoices 68,000 4,000 invoices Total overhead $ 328,000 Two of Rupert's customers are McLean Designs and Neveux Appliances. Data for orders and deliveries to these two customers follow: McLean Designs Neveux Appliances Order value (total) $ 72,000 $ 82,000 Number of orders 52 96 Total number of items 510 1,200 Number of invoices 12 90…arrow_forward
- Dhapaarrow_forwardMarvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity- based costing methods and identified four activities. Data on these activities follow. 三 Cost Driver Volume Activity Processing order Loading truck Delivering merchandise Processing invoice Cost $ 60,000 266,000 72,000 Driver Volume 4,000 orders 140,000 items 4,000 orders 3,000 invoices Cost Driver Number of orders Number of items Number of orders Number of invoices 54,000 Total overhead $452,000 Two of Marvin's customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow. City Diner $77,000 Le Chien Chaud Order value $87,000 Number of orders 57 190 Number of items Number of invoices 450 2,300 11 230 Required: a. What would the delivery charge for each customer be under…arrow_forwardk ces Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost of delivery. A consultant has analyzed the delivery service using activity- based costing methods and identified four activities. Data on these activities follow. Data on these Activity Processing order Loading truck Delivering merchandise Processing invoice Total overhead Cost Driver Number of orders. Number of items. Number of orders Number of invoices Order value Number of orders. Number of items Number of invoices Cost Driver Volume 52 600 12 Cost $75,000 150,000 90,000 72,000 $387,000 Driver Volume 5,000 orders 100,000 items Two of Marvin's customers are City Diner and Le Chien Chaud. Data for orders and deliveries to these two customers follow. City Diner Le Chien Chaud $75,000 $99, 900 110 1,500 150 5,000 orders 4,000 invoices Required: a. What would the delivery charge for…arrow_forward
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub