Driver and guard wages Vehicle operating expenses Vehicle depreciation Customer representative salaries and expenses Office

Expenses Administrative Expenses Totals

$ $ $

840,000.00 270,000.00 150,000.00

$ 180,000.00 $ 40,000.00 $ 340,000.00 $ 1,820,000.00

Driver and guard wages Vehicle operating expenses Vehicle depreciation Customer representative salaries and expenses Office Expenses Administrative Expenses

$ $ $ $ $ $ $

Customer Service Travel Delivery Other 336,000.00 $ 378,000.00 $ 84,000.00 $ 42,000.00 202,500.00 $ 13,500.00 $ $ 54,000.00 105,000.00 $ 15,000.00 $ $ 30,000.00 643,500.00 $ $ 153,000.00 $ 10,000.00 $ 14,000.00 $ 17,000.00 $ 187,000.00 $ 433,500.00 $ 438,000.00 $ $ $ $ 27,000.00 16,000.00 136,000.00 305,000.00

$ $ $

Totals 840,000.00 270,000.00 150,000.00

$ 180,000.00 $ 40,000.00 $ 340,000.00 $ 1,820,000.00

Activity Cost Pool Supporting direct labor Machine processing Machine Setups Production orders Shipments Product Sustaining Direct Labor Machine hours Machine Setups Production Orders Shipments Production Sustaining

$ $ $ $ $ $

Activity Rates 7.00 3.00 40.00 160.00 120.00 800.00 1000 3200 5 5 10 1 40 30 1 1 1 1

J78 Direct Labor Machine hours Machine Setups Production Orders Shipments Production Sustaining

Activity Rates 1000 3200 5 5 10 1

Activity $ $ $ $ $ $ 7.00 3.00 40.00 160.00 120.00 800.00

ABC Cost $ 7,000.00 $ 9,600.00 $ 200.00 $ 800.00 $ 1,200.00 $ 800.00 $ 19,600.00 ABC Cost $ 280.00 $ 90.00 $ 40.00 $ 160.00 $ 120.00 $ 800.00 $ 1,490.00

W52 Direct Labor Machine hours Machine Setups Production Orders Shipments Production Sustaining

Activity Rates 40 30 1 1 1 1 $ $ $ $ $ $

Activity 7.00 3.00 40.00 160.00 120.00 800.00

The following activities occur at Greenwich Corporation, a company that manufactures a variety of products. a. Various individuals manage the parts inventories. b. A clerk in the factory issues purchase orders for a job. c. The personnel department trains new production workers. d. The factorys general manager meets with other department heads such as marketing to coordinate plans. e. Direct labor workers assemble products. f. Engineers design new products. g. The materials storekeeper issues raw materials to be used in jobs. h. The maintenance department performs periodic preventive maintenance on general-use equipment.

Product-level Batch-level Organizationsustaining Organizationsustaining Unit-level Product-level Batch-level Organizationsustaining

Activity Cost Pool Supporting direct labor orders processing Custom Designing Customer Services

$ $ $ $

Activity Rates 18.00 192.00 261.00 426.00

Standard Model Numbers of gliders Numbers of orders Numbers of custom designs Direct labor-hours per glider Selling price per glider Direct Materials cost per glider

Custom Design 2 2 2 32 2,300.00 576.00

$ $

10 1 0 28.5 1,650.00 $ 462.00 $

Sales Cost Direct Materials Direct Labor Supporting Direct Labor Order Processing Custom Designing Customer Service Customer Margin

$ $ $ $ $ $ $ 5,772.00 6,631.00 6,282.00 576.00 522.00 426.00 $ $

21,100.00

20,209.00 891.00