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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?
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