costacctg13_sm_ch05

Directcosts direct cost cogs 516 524 1520min

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Unformatted text preview: 80 Total costs 55,600 59,800 40,600 156,000 Operating inco me $ 1,400 $ 3,200 $11,400 $ 16,000 Operating inco me ÷ Revenues 2.46% 5.08% Baked Goods 30 98 183 15,500 21.92% 9.30% These act ivit y costs are based on the fo llowing: Activity Ordering Delivery Shelf­stocking Customer support 3. Cost Allocation Rate $100 per purchase order $80 per delivery $20 per hour $0.20 per item so ld Milk & Frozen Fruit Juice Products 25 13 36 28 166 24 20,500 7,900 The rankings o f products in terms of relative profitabilit y are: Simple Costing System ABC System 1. Baked goods 13.33% Frozen products 2. Frozen products 12.50 Milk & fruit juice 3. Milk & fruit juice 3.02 Baked goods 21.92% 5.08 2.46 5­14 The percentage revenue, COGS, and act ivit y costs for each product line are: Baked Goods 33.14 31.67 44.12 60.49 49.06 35.31 Milk & Frozen Fruit Juice Products Total 36.63 30.23 100.00 39.17 29.16 100.00 36.76 22.22 44.50 46.70 19.12 17.29 6.44 17.99 100.00 100.00 100.00 100.00 Revenues COGS Act ivit y areas: Ordering Delivery Shelf­stocking Customer support The baked goods line drops sizably in pro fitabilit y wh...
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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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