Total Assigned Cost for Shipper A Assigned Cost for Each Shipment

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
icon
Related questions
Question
Use the appropriate strategy to assign joint costs of an LTL route to each of the following shipments. Show your calculations and the
assigned cost below.
[1] A PUD truck driver works ten hours serving local customers for an LTL carrier. On the route, the driver makes 12 stops at area
industries. The driver averaged 25 miles per hour while driving and drove 150 miles. During the trip, the driver handled 80 separate
shipments, filling 70% of his truck by weight and 65% by the cube. The route cost a total of $2450. Using the time strategy for PUD
cost assignment, determine the costs to be assigned to Shipper A and each shipment if the driver handled 4 shipments (3 delivered, 1
picked up)
at the stop, and took 40 minutes to serve the Shipper.
Total Assigned Cost for Shipper A
Assigned Cost for Each Shipment
[2] An LTL linehaul truck route takes 15 hours to complete. During the move, the truck moved an average of 36,500 pounds of
freight, which filled 3200 cubic feet of the trailer. The trailer can hold 52,000 pounds and 3620 cubic feet of freight. The route
normally
costs $2700 to make.
Using the strategy of charging the shipment based upon the capacity used, what would be the cost assigned to Shipment C if it
includes 24 boxes, each weighing 22 pounds? Each box is 3'x3'x1.5. These boxes are on the truck for the entire 15 hours.
Assigned Cost to Shipment C
Transcribed Image Text:Use the appropriate strategy to assign joint costs of an LTL route to each of the following shipments. Show your calculations and the assigned cost below. [1] A PUD truck driver works ten hours serving local customers for an LTL carrier. On the route, the driver makes 12 stops at area industries. The driver averaged 25 miles per hour while driving and drove 150 miles. During the trip, the driver handled 80 separate shipments, filling 70% of his truck by weight and 65% by the cube. The route cost a total of $2450. Using the time strategy for PUD cost assignment, determine the costs to be assigned to Shipper A and each shipment if the driver handled 4 shipments (3 delivered, 1 picked up) at the stop, and took 40 minutes to serve the Shipper. Total Assigned Cost for Shipper A Assigned Cost for Each Shipment [2] An LTL linehaul truck route takes 15 hours to complete. During the move, the truck moved an average of 36,500 pounds of freight, which filled 3200 cubic feet of the trailer. The trailer can hold 52,000 pounds and 3620 cubic feet of freight. The route normally costs $2700 to make. Using the strategy of charging the shipment based upon the capacity used, what would be the cost assigned to Shipment C if it includes 24 boxes, each weighing 22 pounds? Each box is 3'x3'x1.5. These boxes are on the truck for the entire 15 hours. Assigned Cost to Shipment C
Expert Solution
steps

Step by step

Solved in 3 steps with 8 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
MARKETING 2018
MARKETING 2018
Marketing
ISBN:
9780357033753
Author:
Pride
Publisher:
CENGAGE L