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pduvin pduvin
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6 years ago
Clarke Industries collects information on two customers for the past year:

   Langley   Soldar
    Supply   Inc.
Revenues   $1,492,000   $640,000
Cost of goods sold   $1,164,000   $486,000
Number of in-stock orders   14   4
Number of out-of-stock orders   12   24

Clarke estimates the following activity-based costs:
   Cost of processing and delivering an in-stock order   $1,200
   Cost of processing and delivering an out-of-stock order   $3,500

An in-stock order is an order for which all the items included are in inventory at the time the order is received.

Required:
Compute the customer specific contribution of each customer for the year using:
a.   16% of revenues as the allocation rate for customer-related costs.
b.   The activity-based costing approach.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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btpsandbtpsand
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6 years ago
thank you
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