Business, 05.05.2020 21:21 Jwelch4171
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:
Activity Cost Driver Cost Driver Volume
Processing order Number of orders $ 75,000 5,000 orders
Loading truck Number of items 150,000 100,000 items
Delivering merchandise Number of orders 90,000 5,000 orders
Processing invoice Number of invoices 72,000 4,000 invoices
Total overhead $ 387,000
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 $ 75,000 $ 90,000
Number of orders 52 110
Number of items 600 1,500
Number of invoices 12 150
Required: a. What would the delivery charge for each customer be under the current policy of 10 percent of order value? b. 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.)
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 21:40, GreenHerbz206
Prior to its closing, income summary had total debits of $1,190,500 and total credits of $1,476,300. what purpose is served by the income summary account and what is the nature of the entries that resulted in the $1,190,500 and the $1,476,300? the income summary account is used to the accounts. the $1,190,500 represents the , and the $1,476,300 represents . the company had of $ .
Answers: 1
Business, 22.06.2019 04:00, tomboyswagge2887
The simple interest in a loan of $200 at 10 percent interest per year is
Answers: 2
Business, 22.06.2019 06:30, henriquetucker
Double corporation acquired all of the common stock of simple company for
Answers: 2
Business, 22.06.2019 19:50, oomale
Joe pays ann to mow his lawn and ann mows vanna's lawn by mistake. vanna peers out her window and sees ann mowing, yet says nothing to ann about her mistake since vanna needs to have her lawn mowed. when ann approaches vanna for payment, vanna refuses, arguing that she never asked ann to mow her lawn. under these circumstances, ann can recover payment from vanna under:
Answers: 1
You know the right answer?
Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent t...
Questions in other subjects:
