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Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of distributors: JIT...

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Accounting

Activity-Based Customer-Driven Costs
Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor pla
Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Round calculations to the nearest dollar.
\table[[Sales (in units),JIT,Non-JIT],[,,,ces small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter:
\table[[,\table[[JIT],[Distributors]],\table[[Non-JII],[Distributors]]],[Sales orders,1,000,100],[Sales calls,70,70],[Service calls,350,175],[Average order size,650,6,500],[Manufacturing cost/unit,$125,$125Activity-Based Customer-Driven Costs activities and costs for the most recent quarter:
\table[[,JIT],[Sistributors,],[Sales orders calls,1,000],[Service calls,70],[Average order size,650],[Manufacturing cost/unit,$125
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