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Essay Details:
Essay text:
The cost and profitability of the five orders, using the cost driver information and its existing costing system:
(1) The ABC system:
Order 1 2 3 4 5
Sales $610.00 $ 634.00 $6,100.00 $6,340.00 $6,100.00
Cost of goods sold 500.00 500.00 5,000.00 5,000.00 5,000.00
Gross margin $110.00 $ 134.00 $1,100.00 $1,340.00 $1,100.00
Cost of :
entering electronic order1a $ 3.50 $ ?? $ 3.50 $ ?? $ ??
entering manual order1b ?? 7.88 ?? 31.50 31.50
processing cartons2 50.25 50.25 502.50 502.50 502.50
shipping cartons commercially3
6.00
??
60.00
??
60.00
desktop deliveries ?? 300.00 ?? 300.00 ??
interest on A/R balance 6...
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