Question Content Area Activity-Based Customer Costing Sleepeze Company produces mattresses for...
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Question Content Area ActivityBased Customer Costing Sleepeze Company produces mattresses for retail outlets. Of the retail outlets, are small, separately owned furniture stores and one is a retail chain. The retail chain buys of the mattresses produced. The smaller customers purchase mattresses in approximately equal quantities, where the orders are about the same size. Data concerning Sleepezes customer activity are as follows: Large Retailer Smaller Retailers 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 Currently, customerdriven costs are assigned to customers based on units sold, a unitlevel 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 $fill in the blank per order Selling call rate $fill in the blank per sales call Cost assignment: Large retailer $fill in the blank Smaller retailers $fill in the blank
Question Content Area
ActivityBased Customer Costing
Sleepeze Company produces mattresses for retail outlets. Of the retail outlets, are small, separately owned furniture stores and one is a retail chain. The retail chain buys of the mattresses produced. The smaller customers purchase mattresses in approximately equal quantities, where the orders are about the same size. Data concerning Sleepezes customer activity are as follows:
Large Retailer Smaller Retailers
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
Currently, customerdriven costs are assigned to customers based on units sold, a unitlevel 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 $fill in the blank
per order
Selling call rate $fill in the blank
per sales call
Cost assignment:
Large retailer $fill in the blank
Smaller retailers $fill in the blank
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