250_Hwk_Chapter_5D

250_Hwk_Chapter_5D - Roasting and Blending If additional...

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ACCT 250 HOMEWORK CHAPTER 5D 767aa519389d4b5d677be3d8f2c2a477ac11d508.xls PAGE 1 OF 1 P5-62 1 Units of Prior Pool Cost Driver Rate Rate B/(W) Purchasing 579,000 1,400 413.57 500.00 86.43 Materials handling 720,000 2,400 300.00 400.00 100.00 Quality control 144,000 1,200 120.00 200.00 80.00 Roasting 961,000 100,000 9.61 10.00 0.39 Blending 336,000 36,000 9.33 10.00 0.67 Packaging 260,000 30,000 8.67 10.00 1.33 2 All of the activity rates have fallen as a result of using practical capacity. These rates will result in lower cost per pound for both of the products examined in P5-61. 3 Units of Driver Cost of Used as % Excess # of Emplys Excess Pool Capacity Used Unused of Capacity Capacity or Machines Employees Purchasing 1,400 1,158 100,084 83% 17% 8 1 Materials handling 2,400 1,800 180,000 75% 25% 20 5 Quality control 1,200 720 57,600 60% 40% 4 1 Roasting 100,000 96,100 37,479 96% 4% 10 - Blending 36,000 33,600 22,400 93% 7% 10 - Packaging 30,000 26,000 34,667 87% 13% 3 - Total 432,230 If there is demand for additional product, the firm has additional capacity in all activities with the exception of
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Unformatted text preview: Roasting and Blending. If additional demand does not exist, the firm may consider reducing its capacity by the number of employees or machines listed in the final column. P5-65 HS Adventix Baldwin HS Adventix Baldwin Sales 600,000 750,000 900,000 Less: Returns 12,000 7,500 27,000 Net sales before discounts 588,000 742,500 873,000 Less: Discounts 11,760 - - Net sales 576,240 742,500 873,000 Order taking 10 5 50 500 250 2,500 Order processing 10 5 50 750 375 3,750 Delivery - 5 50 - 1,500 15,000 Expedited orders - 2 5 - 1,000 2,500 Restocking - returns 3 4 10 600 800 2,000 Restocking - units 20 13 45 200 125 450 Sales visits 1 1 2 800 800 1,600 Total activity costs 2,850 4,850 27,800 Net profit 573,390 737,650 845,200 Baldwin is a dramatically more expensive customer to serve than the others due to the fact that they place more smaller orders requiring more frequent deliveries....
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This homework help was uploaded on 04/18/2008 for the course ACCTG 250 taught by Professor Rabe during the Spring '08 term at Luther.

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