edf40wrjww2CF_PaperMaster:Desc
1.Based on the interviews and data in the case, we calculated the following information.
(1)The cost of processing cartons through the facility:
Personnel expense (warehouse, truck drivers)2,570,000
¡ÐCompensation for truck drivers ( 250,000)
Warehouse personnel expense $2,020,000
¡ÏWarehouse expenses (excluding personnel) 2,000,000
$4,020,000
(2) The cost of entering electronic and manual customer orders:
Order entry expenses $ 840,000
(3) The cost of shipping cartons on commercial carriers:
Freight $ 450,000
(4) The cost per hour for desktop deliveries:
Compensation for truck drivers $250,000
¡ÏDelivery truck expenses 200,000
The cost for desktop deliveries $450,000
¡Ò 6,000 hrs (1,500hr ¡Ñ 4) ¡Ò 6,000
$ 75
2. 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 ...