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Allied Paper Product

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1. Answer
The use of data given in the question to calculate ABC based service charges is presented in the following table:  
Activity | Cost as Per Question | Activity Driver | Activity DriverUnits | Activity Based Cost |
Storage | 1550,000$ | Number of Cartons | 350,000 | 4.43$ |
Requisition Handling | 1801,000$ | Number of Requisitions | 310,000 | 5.81$ |
Basic warehouse stock selection |   761,000$ | Number of Requisition Lines | 775,000 | 0.98$ |
Pick-pack Activity |   734,000$ | Number of Lines requiring pick-pack | 697,500 | 1.05$ |
Data entry |   612,000$ | Number of Requisition Lines | 775,000 | .79$ |
Desktop delivery |   250,000$ | Number of Desktop Deliveries | 8,500 | 29.41$ |
Total |   5708,000$ | | | |

Note:-
The activity driver unit for pick-up activity is calculated as:
Number of requisitions estimated to be processed for 1992 = 310,000
Each requisition contains on average 2.5 lines so number of lines for 1992 = 310,000*2.5 = 775,000
Number of lines requiring pick-pack activity = 775,000*90% = 697,500

Note: All figures are rounded to nearest $

  2. Answer
Distribution service cost for “customer A” and for “Customer B”
Activity | Activity Based Cost | Activity Driver | Activity DriverUnits | Distribution Cost |
| | | Customer A | Customer B | Customer A | Customer B |
Storage | 4.43$ | Number of Cartons | 350 | 700 | 1,550$ | 3,100$ |
Requisition Handling | 5.81$ | Number of Requisitions | 364 | 790 | 2,115$ | 4,590$ |
Basic warehouse stock selection | 0.98$ | Number of Requisition Lines | 910 | 2,500 | 894$ | 2,455$ |
Pick-pack Activity | 1.05$ | Number of Lines requiring pick-pack | 910 | 2,500 | 958$ | 631$ |
Data entry | .79$ | Number of Requisition Lines | 364 | 790 | 719$ | 1,974$ |
Desktop delivery | 29.41$ | Number of Desktop Deliveries | - | 26 | - | 765$ |
Inventory handling | | | | | - | 315$ |
Freight | | | | | 2,250$ | 7,500$ |
Total | | | | | 8,486$ | 23,330$ |...

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MLA Citation

"Allied Paper Product". Anti Essays. 18 Dec. 2018

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APA Citation

Allied Paper Product. Anti Essays. Retrieved December 18, 2018, from the World Wide Web: http://parimatchstavki7.com/free-essays/Allied-Paper-Product-507229.html