AMASON - A-MASON.COM Arthur Mason's dot com venture...

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A-MASON.COM Arthur Mason’s dot com venture established in 1994 is a big name in web retailing today, with its product line spanning books, music CDs, DVDs, toys, electronics and wide range of home and kitchen items. Once an order is placed on their website, it is the task of the Operations team located at Reno fulfillment centre (FC) to ensure that the delivery dates promised to customers are honored. Rachel Green, a finance intern from Krannert, has been asked to understand the costing system and propose a better system, if possible, so that A-MASON.com can offer better pricing to customers. The product range at the company is divided into 2 broad categories Soft (Books, Media, Video and DVD) and Hard (All others). For the year, the controller has estimated the total OH costs to be $2,000,000. The Sales and Operations team has also forecasted that this year Reno would ship out 5 million units across TEKHO and BMVD. Traditionally, this overhead has been allocated equally to all shipped units. Calculate the allocated OH cost per item as per the current practice?
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This note was uploaded on 02/06/2012 for the course MGMT 201 taught by Professor Rowe during the Fall '08 term at Purdue.

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AMASON - A-MASON.COM Arthur Mason's dot com venture...

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