Activity-Based Customer Costing Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small, separately owned furniture stores and one is a retail chain. The retail chain buys 60% of the mattresses produced. The 19 smaller customers purchase mattresses in approximately equal quantities, where the orders are about the same size. Data concerning Sleepeze’s customer activity are as follows:   Large Retailer Smaller Retailers Units purchased 108,000   72,000   Orders placed 36   3,600   Number of sales calls 18   882   Manufacturing costs $43,200,000   $28,800,000   Order filling costs allocated* $1,363,500   $909,000   Sales force costs allocated* $756,000   $504,000   *Currently allocated on sales volume (units sold).   Currently, customer-driven costs are assigned to customers based on units sold, a unit-level driver. Required: Assign costs to customers by using an ABC approach. Round your answers and all intermediate calculations to the nearest dollar. Order filling rate $ per order Selling call rate $ per sales call Cost assignment:   Large retailer $ Smaller retailers $

Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $73 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 44,000 units and sold 39,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense a. What is the company's break-even point in unit sales? The company sold 29,000 units in the East region and 10,000 units in the West region. It determined that $180,000 of its fixed selling and administrative expense is traceable to the West region, $130,000 is traceable to the East region, and the remaining $90,000 is a common fixed expense. The company will continue to incur the total amount of its fixed…

Rahul

Pharoah Industries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item Chairs O $11270 $11520 $10880 O $17390 $78.00 61.00 $17.00 1.60 Tables $95.00 77.00 $18.00 1.60 Pharoah has 1024 machine hours available each month. The demand for chairs is 610 units per month and the demand for tables is 390 units per month. If Pharoah allocates its production capacity between the chairs and tables so that it maximizes the company's contribution margin, what will the total contribution margin be?

Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the year just completed: Cost Driver Number of purchase orders Number of moves Distributing Number of shipments Activity Purchasing Warehousing Quantity of Cost Driver 1,200 8,900 700 Cost per Unit of Cost Driver $170 per order 39 per move 100 per shipment Caldwell buys 102,000 units at an average unit cost of $19 and sells them at an average unit price of $29. The firm also has fixed operating costs of $252,000 for the year. Maximum cost Caldwell's customers are demanding a 19% discount for the coming year. The company expects to sell the same amount if the demand for price reduction can be met. Caldwell's suppliers, however, are willing to give only a 13% discount. Required: Caldwell has estimated that it can reduce the number of purchase orders to 880 and can decrease the cost of each shipment by…

Paint Company has two customers Commercial and Consumer with data as follows:   Commercial Consumer Selling Price per unit $15 $15 Units Sold 5,000 8,000 Manufacturing Cost per unit   $8.25   $8.25 Number of Purchase Orders   76   212 Number of Deliveries 104 287 Number of Expedited deliveries   357   589 Customer Visits 58 75   Paint Company’s management accountant has gathered the following ABC rate information:   ABC Cost Rate Purchase Orders $ 72 per purchase order Deliveries $ 43 per delivery Expedited Deliveries $ 18 per expedited delivery Customer Visits $ 56 per customer visit   Using the information in the tables above and allocating indirect support costs using ABC to customers, what is the Operating Income for the Commercial customer?

Ramirez Corp. has two customers, C1 and C2. Ramirez Corp currently allocates indirect costs to customers at a rate of 5% of customer revenue. Data for C1 and C2 are as follows: C1 C2 Selling Price per Unit $20.00 $20.00 Units Sold 50,000 12,000 Manufacturing Cost per unit $15.00 $15.00 Number of Purchase Orders 112 27 Number of deliveries 105 68 Number of Inspection 77 50 Customer Visits 40 35 A. Using the current costing system to allocate support costs, calculate Operating Income for customers C1 and C2. Ramirez Corp.'s Management Accountant has gathered the following ABC rate information: ABC Cost Rate Number of purchase orders $40 per purchase order $85 per delivery $200 per expedited delivery Number of deliveries Number of inspections Number of customer visits $400 per customer visit b. Calculate the total support cost allocated to C1 & C2 using the Activity Based Costing (ABC) system. c. Comparing the indirect cost allocated in part a. to the indirect cost allocated in part b.…

solve this Question as per fast to posible