acc403module4case

# acc403module4case - TUI UNIVERSITY PRINCIPLES OF ACCOUNTING...

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TUI UNIVERSITY PRINCIPLES OF ACCOUNTING ACC 403 MODULE 4 Case Assignment Dr Annette Hebble Gennaro A. Penn March 7, 2010

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1. Calculate the customer support and distribution costs (CS/DC) associated with the three types of customers. Distribution Cost is \$180,000.00 o Use a simple strategy first and allocate the costs based on revenues. Department Stores Specialty Stores Gift Shops \$150,000.00 \$100,000.00 \$250,000.00 30% CS/DC 20% of CS/DC 50% of CS/DC \$54,000.00 \$36,000.00 \$90,000.00 o Recalculate the allocations using Activity Based Costing (ABC). Dep Stores Specialty Shops Gift Shops Total costs/No of orders places \$40,000 \$400.00/10 \$3,600.00/90 \$36,000.00/900 Total costs/No of sales calls 80,000 \$400.00/5 \$15,600.00/195 \$64,000.00/800 Total costs/No of shipments 60,000 \$800.00/20 \$19,200.00/480 \$40,000.00/1,000 \$1,600.00 \$38,400.00 \$140,000.00 The total calculations of Customer Support and Distribution Costs are as follows. 1000 orders placed which equaled \$40,000.00
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## This note was uploaded on 03/25/2012 for the course ACC 403 taught by Professor Zuff during the Spring '12 term at Trident Technical College.

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acc403module4case - TUI UNIVERSITY PRINCIPLES OF ACCOUNTING...

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