ACCT3032TuteSols49.pdf - 201 Award 1.00 point Benton...

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201. Award: 1.00 point 202. Award: 1.00 point Benton Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $48,000 for purchasing support should be assigned to the individual vendors from the information given as follows: Vendor A Vendor B Units purchased 100,000 200,000 Purchase orders (annual) 6 24 Number of shipments received 12 52 What is the amount of the purchasing costs that should be allocated to Vendor B, assuming Benton uses number of shipments received to compute activity- based costs? $9,000 $16,000 $32,000 $39,000 52/(12 + 52) × $48,000 = $39,000 References Multiple Choice Difficulty: 1 Easy Learning Objective: 10-04 Use activity-based costing methods to assess customer and supplier costs. Express Travel decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Express Travel should charge $16 per order, 1% of the order's value for general delivery costs, $2.50 per item, and $45 for delivery.
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