{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

costacctg13_sm_ch05

# 5 37 535 3040min

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: oods sold Gross margin Other operating costs Operating inco me Gross margin % 2.91% 4.76% The gross margin of Pharmacare, Inc., was 4.96% (\$438,000 ÷ \$8,838,000). The operating inco me margin o f Pharmacare, Inc., was 1.55% (\$136,920 ÷ \$8,838,000). 2. The per­unit cost driver rates are: 1. Customer purchase order processing, \$80,000 ÷ 2,000 (140 + 360 + 1,500) orders 2. Line item ordering, \$63,840 ÷ 21,280 (1,960 + 4,320 + 15,000) line items 3. Store delivery, \$71,000 ÷ 1,480 (120 + 360 + 1,000) deliveries 4. Cartons shipped, \$76,000 ÷ 76,000 (36,000 + 24,000 + 16,000) cartons 5. Shelf­stocking, \$10,240 ÷ 640 (360 + 180 + 100) hours 3. = \$40 per order = \$ 3 per line item = \$47.973 per delivery = \$ 1 per carton = \$16 per hour The activit y­based costing of each distribut ion market for August 2008 is: General Supermarket Chains Drugstore Chains \$14,400 12,960 17,270 24,000 2,880 \$71,510 Mom­and­ Pop Single Stores \$ 60,000 45,000 47,973 16,000 1,600 \$170,573 Total \$ 80,000 63 ,840 71,000 76,000 10,240 \$301,080 1. Customer purchas...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online