Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Sleepeze Company produces mattresses for 20 retail outlets Of the 20 retail outlets 19 are...

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

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...................$28,800,000 Order filling costs allocated*....................$ 1,455,127.......................$ 970,085 Sales force costs allocated*........................$ 719,820......................$ 479,880 *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 activity rates and activity costs to the nearest dollar.

Jun 24 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions