Dogie Agency has three police dogs to be assigned to 3 different department stores. The cost of each dog on each department is given below Dogs SM Robinson CSI 200 350 270 2 300 250 150 3 400 350 270 1. What quantitative technique can you utilize for this problem? Explain. 2. Determine the minimum cost of each dog per department.
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- 1. You have been provided with the following data regarding shipments and costs for Brighton Boutiques: Number of Shipments Received Cost per Receiving Report $202 185 120 105 70 80 87 115 100 $300 $200 $100 $- 0 142 154 20 162 Required: Plot the data points on a scatter graph, and then using the high-low method, determine the cost function of the line that will connect the high and low points on the graph. Does the cost function appear to be linear in nature? 200 175 Graph Template 40 80 60 Number of Shipments 100 120 140Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Cost Item 1. Labor time to repair products under warranty 2. Radio commercials 3. Labor costs of delivering customer orders 4. Testing of competitor's product 5. Direct manufacturing labor costs 6. Development of order tracking system for online sales 7. Design cost of new product brochures 8. Hours spent designing childproof bottles 9. Training costs for representatives to staff the customer call center 10. Installation of robotics equipment in manufacturing plant Business FunctionThe following terms are used to describe various economic characteristics of costs.a. Opportunity costb. Out-of-pocket costc. Sunk costd. Differential coste. Marginal costf. Average costRequired: Choose one of the terms listed above to characterize each of the amounts described below.1. The cost of feeding 500 children in a public school cafeteria is $800 per day, or $1.60 per child per day. What economic term describes this $1.60 cost?2. The cost of including one extra child in a day-care center.3. The cost of merchandise inventory purchased two years ago, which is now obsolete.4. The management of a high-rise office building uses 2,500 square feet of space in the building for its own management functions. This space could be rented for $250,000. What economic term describes this $250,000 in lost rental revenue?5. The cost of building an automated assembly line in a factory is $800,000. The cost of building a manually operated assembly line is $375,000. What economic term is used to…
- Kara Meyer, owner of Flower Power, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Meyer wants to set the delivery fee based on the distance driven to deliver the flowers. Meyer wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past seven months: (Click the icon to view the data.) Read the requirements. Requirement 1. Determine the company's cost equation (use the output from the Excel regression). (Ro y = x + Data table Month January.. February March April May June July Miles Driven 16,400 17,500 15,000 16,100 17,300 15,600 14,500 Print Van Operating Costs $5,480 $5,400 $4,950 $5,270 $5,740 $5,440 $4,680 Done - XCal’s Sporting Goods has three product lines and has decided to apply ABC analysis to these three product lines: Running, Golfing and Kayaking. He identifies four activities and their activity cost rates as follows: Ordering $95 per purchase order Delivery and receipt of merchandise $76 per delivery Shelf stocking $19 per hour Customer support and assistance $0.15 per item sold. The revenues, cost of goods sold and activity usage are listed below: Running Golfing Kayaking Financial Data Revenues $60,000 $66,500 $50,500 Cost of goods sold $41,000 $51,000 $32,000 Store support costs (overhead) Activity Area Usage Ordering (purchase orders 44 24 14 Delivery (deliveries) 120 60 36 Shelf stocking (hours) 170 150 20 Customer support (items sold) 15,400 20,200 7,960 Under the simple costing system. Cal’s Sporting Goods…Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Customer deliveries Manual order processing Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Electronic order processing Line item picking Total selling and administrative expenses Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity City General 10 0 10 100 Required 1 Required 2 County General Activity Cost Pool 20 40 Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the total activity costs that would be assigned…
- Convert the accompanying database to an Excel table to find: a.The total cost of all orders. b.Thetotal quantity of airframe fasteners purchased. c. The total cost of all orders placed with Manley Valve. Question content area bottom Part 1 a. The total cost of all orders is $?????? enter your response here.2. Assume that Kizzle's management allocates Maintenance costs based on the number of service calls. Further assume that in a given period, the Janitorial, Mixing, and Cooking activities incur 16, 40, and 24 service calls, respectively, and that the Janitorial and Maintenance costs of that period are $3,000 and $4,200, respectively. Determine the total costs allocated from each support activity to the other three activities using the reciprocal services method. Malntenance cost allocation: Janitorial: Mixing: $4 Cooking: Janitorial cost allocation: Maintenance: Mixing: Cooking: 3. The company is considering changing from the reciprocal service method to a simpler method. Why should the company continue with the reciprocal service method? a. It is complex, but more accurate. b. It can be practiced if the company has sufficient resources and capacity. C. The simpler cost allocation methods are less accurate. d. All the above.Boston Home Center (BHC) offers customers the use of a truck at $44 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage: Cost Driver Rate Cost Driver Volume Resources used Operation $ 0.55 per mile 45,400 miles Administration 25.00 per trip 1,870 trips Resources supplied Operation $ 35,000 Administration $ 62,000 Required: Compute the cost of unused operation and administration resource capacity for Boston Home Center. unused resource capacity operation administration
- If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,900 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,900 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why?The Helium Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available: Options: a. P8,571 b. P15,000 c. P9,000. d. P10,350 e. none of the above19) To allocate O/H, how many separate cost pools should be formed given the following information? Cost Postage costs Printing and paper costs Quality control costs Customer service costs 20)Bob has assembled the following cost data that cannot be easily identified as either fixed or variable. Cost Hours $24,000 $26,100 $34,700 $48,000 $38,300 Cost driver # of brochures mailed # of brochures mailed # of inspections # of customers served 5,000 6,300 7,900 11,000 9,250