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Question - Fence Industries is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $12,000 for sales support should be assigned to the individual customers from the information given as follows:
Customer A
Customer B
Units purchased
100,000
200,000
Purchase orders (annual)
5
20
Required - What is the amount of the sales support costs that should be allocated to Customer A, assuming Fence uses purchases orders to compute activity-based costs?
Inman Manufacturing Company makes a product that it sells for $60 per unit. The company incurs variable manufacturing costs of $31 per unit. Variable selling expenses are $5 per unit, annual fixed manufacturing costs are $191,000, and fixed sellin..
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