ACCT
ACCT3032TuteSols65.pdf

# ACCT3032TuteSols65.pdf - Essay 266 Award 1.00 point Diculty...

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266. Award: 1.00 point 267. Award: 1.00 point Essay Diﬃculty: 3 Hard Learning Objective: 10-04 Use activity-based costing methods to assess customer and supplier costs. Mobile Repair Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the \$125,000 for purchasing support should be assigned to the individual vendors from the information given as follows: Vendor A Vendor B Vendor C Units purchased 100,000 200,000 200,000 Purchase orders (annual) 6 24 100 Number of shipments received 12 52 25 Required: a. Prepare a schedule to allocate the purchasing costs to the three vendors, assuming Mobile Repair uses units purchased to compute activity-based costs. b. Prepare a schedule to allocate the purchasing costs to the three vendors, assuming Mobile Repair uses purchases orders to compute activity-based costs. c. Prepare a schedule to allocate the purchasing costs to the three vendors, assuming Mobile Repair uses number of shipments to compute activity-based costs. a. A: [100,000/(100,000 + 200,000 + 200,000)] × \$125,000 = \$25,000 B: [200,000/(100,000 + 200,000 + 200,000)] × \$125,000 = \$50,000 C: [200,000/(100,000 + 200,000 + 200,000)] × \$125,000 = \$50,000 b. A: [6/(6 + 24 + 100)] × \$125,000 = \$5,769 B: [24/(6 + 24 + 100)] × \$125,000 = \$23,077 C: [100/(6 + 24 + 100)] × \$125,000 = \$96,154 c. A: [12/(12 + 52 + 25)] × \$125,000 = \$16,854 B: [52/(12 + 52 + 25)] × \$125,000 = \$73,034 C: [25/(12 + 52 + 25)] × \$125,000 = \$35,112

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• One '14
• Accounting, Consultative selling, Supply chain management terms

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