The Marionettes Company is noted for an exceptionally impressive line of Mardi Gras masks.Marionettes has established the following selling and distribution support activity-cost pools and their corresponding activity drivers for the year 2018:
$\begin{array}{lrr}
\text { Activity } & \text { Cost } & \text { Cost Driver } \
\text { Marketing } & \$ 30000 & \$ 500 \text { 000 of sales } \
\text { Customer service } & 10000 & 5000 \text { customer } \
\text { Order execution } & 5000 & 100 \text { orders } \
\text { Warehousing } & 5000 & 50 \text { product lines }
\end{array}$
Required:
a.Determine the activity-cost-driver rate for each of the four selling and distribution activities.
b.Under what circumstances is it appropriate to use each of the activity-cost drivers?
c.Describe at least one possible negative behavioural consequence for each of the four activity-cost drivers.
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Question

The Marionettes Company is noted for an exceptionally impressive line of Mardi Gras masks.Marionettes has established the following selling and distribution support activity-cost pools and their corresponding activity drivers for the year 2018:
 $\begin{array}{lrr}
\text { Activity } & \text { Cost } & \text { Cost Driver } \
\text { Marketing } & \$ 30000 & \$ 500 \text { 000 of sales } \
\text { Customer service } & 10000 & 5000 \text { customer } \
\text { Order execution } & 5000 & 100 \text { orders } \
\text { Warehousing } & 5000 & 50 \text { product lines }
\end{array}$ 
Required:
a.Determine the activity-cost-driver rate for each of the four selling and distribution activities.
b.Under what circumstances is it appropriate to use each of the activity-cost drivers?
c.Describe at least one possible negative behavioural consequence for each of the four activity-cost drivers.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Quizplus · Accepted Answer

The Answer of The Marionettes Company is noted for an exceptionally impressive line of Mardi Gras masks.Marionettes has established the following selling and distribution support activity-cost pools and their corresponding activity drivers for the year 2018:
 $\begin{array}{lrr}
\text { Activity } & \text { Cost } & \text { Cost Driver } \
\text { Marketing } & \$ 30000 & \$ 500 \text { 000 of sales } \
\text { Customer service } & 10000 & 5000 \text { customer } \
\text { Order execution } & 5000 & 100 \text { orders } \
\text { Warehousing } & 5000 & 50 \text { product lines }
\end{array}$ 
Required:
a.Determine the activity-cost-driver rate for each of the four selling and distribution activities.
b.Under what circumstances is it appropriate to use each of the activity-cost drivers?
c.Describe at least one possible negative behavioural consequence for each of the four activity-cost drivers.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

The Marionettes Company Is Noted for an Exceptionally Impressive Line