costacctg13_sm_ch05

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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...
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This note was uploaded on 10/11/2010 for the course ACCT 321 taught by Professor Cole during the Spring '10 term at University of Miami.

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