Allied office Products Case
Essay by Zhining Zhou • February 25, 2019 • Case Study • 559 Words (3 Pages) • 1,214 Views
Zhining Zhou
ACCT 5201 Section 001
Professor White
February 26, 2019
Allied Office Products
Question 1
ABC based services costs:
Activity Based Costing | |||||
Activity | Total Cost | Activity Driver | Unit | Cost Per Unit | Percentage |
Storage | 1,550,000 | carton | 350,000 | 4.43 | 27% |
Requisition Handling | 1,801,000 | requisition | 310,000 | 5.81 | 32% |
Warehouse Stock Selection | 761,000 | line | 775,000 | 0.98 | 13% |
Pick-Pack | 734,000 | line | 697,500 | 1.05 | 13% |
Data Entry | 612,000 | line | 775,000 | 0.79 | 11% |
Desk top delivery | 250,000 | desk top request | 8,500 | 29.41 | 4% |
TOTAL | 5,708,000 |
|
|
| 100% |
Question 2
Service cost for Customer A & B under ABC method:
|
| Units of activity driver | Cost | ||
Activity | Cost Per Unit | Customer A | Customer B | Customer A | Customer B |
Storage | 4.43 | 350 | 700 | 1550.00 | 3100.00 |
Requisition Handling | 5.81 | 364 | 790 | 2114.72 | 4589.65 |
Warehouse Stock Selection | 0.98 | 910 | 2500 | 893.56 | 2454.84 |
Pick-Pack | 1.05 | 819 | 2250 | 861.86 | 2367.74 |
Data Entry | 0.79 | 910 | 2500 | 718.61 | 1974.19 |
Desk top delivery | 29.41 | 0 | 26 | 0.00 | 764.71 |
inventory cost | 4.50% | 0 | 7000 | 0.00 | 315.00 |
annual freight cost | 2250 | 7500 | |||
TOTAL |
|
|
| 8388.75 | 23066.13 |
Question 3
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