ACC 2311/HE22 Cost Acct 1 (Spring 18 Homework: Assignment 6: Chpt 5 ABC Costing

Question

ACC 2311/HE22 Cost Acct 1 (Spring 18 Homework: Assignment 6: Chpt 5 ABC Costing 5 of 6 (5 complete) Score: 11.25 of 30 pts %E5-27 (book/static) Fitrgeraid Supermarkets (FS) operates at capacity and decides to apply ABC analysis to theee product lines baked goods, milk and thuit (uice, and frozen toods It identifies four activti IClick the loon to view he activity cost raes) acount for the store support oosts, and activityarea unage of the three product lines are as follows revenues, cost ot TI (Click the loon to view the information for the three product lines ) 1. Use the simple costing system to prepare a product-line proftability report for FS. 2. Use the ABC system to prepare a product-ine proftability report for FS 3. What new insights does the ABC system in requirement 2 provide to FS managers? Total costs Operating income 6,700 S 8.900 $ 15.800 11 17% 0.30 % 17.62 % 8.93 % Requirement 2. Use the ABC system to prepare a product-line profitability report for FS. (Round the peroentages to the nearest hundredth percent. XXX%.) profitability report for FS. (Round the Mik andFrozen Baked Goods Fruit Julce Products Tot More Inf $96 per purchase order $76 per delivery $19 per hour $0. 15 per bam sold Cost of geods sold Delivery and recept of merchandise Customer support and assistance Shelt-stocking Customer support Print Done Operating income Enter any number in the edit felds and then click Check Answer Clear All MacBook Pro 8 4 8 0

Explanation / Answer

Baked Goods Milk and Fruit Juice Frozen Products Total Revenues 60000 66500 50500 177000 Costs Cost of goods sold 41000 51000 32000 124000 Ordering ($95 × 44; 24; 14)) 4180 2280 1330 7790 Delivery ($76 × 120; 60; 36) 9120 4560 2736 16416 Shelt-Stocking ($19 × 170; 150; 20) 3230 2850 380 6460 Customer support ($0.15 × 15,400; 20,200; 7,960) 2310 3030 1194 6534 Total Costs 59840 63720 37640 161200 Operating Income 160 2780 12860 15800 Operating Income / Revenues 0.27% 4.18% 25.47% 8.93%

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