What is the amount of the sales support costs

Assignment Help Accounting Basics

Reference no: EM133007195

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 110,000 200,000

Purchase orders (annual) 5 20

What is the amount of the sales support costs that should be allocated to Customer B, assuming Fence uses units purchased to compute activity-based costs?

Reference no: EM133007195

Questions Cloud

Do you feel that human resources decisions can be measured : Do you feel that human resources decisions can be measured? Provide examples.

What is the probability that the stock returns : According to Investment Digest ("Diversification and the Risk/Reward Relationship", Winter 1994, 1-3), What is the probability that the stock returns

Which is a cash inflow from financing activities : Which is a cash inflow from financing activities? Which of the steps comes first in worksheet preparation? Which the owner's equity account reflects

Training and development programs : -What myths or misconceptions of affirmative action plans did you have before reading about them? How do they compare with reality?

What is the amount of the sales support costs : What is the amount of the sales support costs that should be allocated to Customer B, assuming Fence uses units purchased to compute activity-based costs

Describe the compensation mix for your most recent employer : Describe the compensation mix for your most recent employer. To what extent did they use base pay, performance pay and indirect pay?

What adjustment will appear on work sheet : Supplies has a P60,000 unadjusted balance on your trial balance. At year-end you count supplies of P20,000. What adjustment will appear on your work sheet?

Determine the relevant costs to make the part : Jordan Pickford Ltd makes 20,000 units of a part. The cost to make the part is $15 in variable costs. Determine the relevant costs to make the part

How many times a year should the store sell securities : How many times a year should the store sell securities and What is its average cash balance

User Account

All Pages