What is the amount of the purchasing costs

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Reference no: EM131025009

Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $63,000 for purchasing support should be assigned to the individual vendors from the information given as follows:

	Vendor A	Vendor B
Units purchased	101,000	202,000
Purchase orders (annual)	7	28
Number of shipments received	14	56

1. What is the amount of the purchasing costs that should be allocated to Vendor B, assuming Rogers uses number of shipments received to compute activity-based costs?

Reference no: EM131025009

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