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counts payable department. e 5-25 Activity-Based Customer Costing mpany produces mattresses for 20 retail outlets....

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counts payable department. e 5-25 Activity-Based Customer Costing mpany produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are cately owned furniture stores and one is a retail chain. The retail chain buys 60% of ses produced. The 19 smaller customers purchase mattresses in approximately equal ce where the orders are about the same size. Data concerning Sleepere's customer activ- Brief Exercise 5-25 Sleepeze Company pr small, separately own che mattresses prod OE quantities, where ity are as follows: Large Retailer 108,000 36 Units purchased Orders placed Number of sales calls Manufacturing costs Order filling costs allocated Sales force costs allocated "Currently allocated on sales volume (units sold). 18 $43,200,000 $ 1,455,127 $ 719,820 Smaller Retailers 72,000 3,600 882 $28,800,000 $ 970,085 $ 479,880 Currently, customer-driven costs are assigned to customers based on units sold, a unit driver. D ivad. n nd activity rates and activity driver. Required: gn costs to customers by using an ABC approach. Round activity rates and activity costs to the nearest dollar

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