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Question Content Area Activity-Based Customer Costing Sleepeze Company produces mattresses for...

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Accounting

Question Content Area
Activity-Based Customer Costing
Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small, separately owned furniture stores and one is a retail chain. The retail chain buys 60% of the mattresses produced. The 19 smaller customers purchase mattresses in approximately equal quantities, where the orders are about the same size. Data concerning Sleepezes customer activity are as follows:
Large Retailer Smaller Retailers
Units purchased 108,00072,000
Orders placed 363,600
Number of sales calls 18882
Manufacturing costs $43,200,000 $28,800,000
Order filling costs allocated* $1,690,740 $1,127,160
Sales force costs allocated* $864,000 $576,000
*Currently allocated on sales volume (units sold).
Currently, customer-driven costs are assigned to customers based on units sold, a unit-level driver.
Required:
Assign costs to customers by using an ABC approach. Round your answers and all intermediate calculations to the nearest dollar.
Order filling rate $fill in the blank 1
per order
Selling call rate $fill in the blank 2
per sales call
Cost assignment:
Large retailer $fill in the blank 3
Smaller retailers $fill in the blank 4

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