. Figure 1
Ander Company produces precision equipment for major buyers. Of the six customers, one accounts for 40 percent of the sales, with the remaining five accounting for the rest of the sales. The five smaller customers purchase equipment in roughly equal quantities. Orders placed by the smaller customers are about the same size. Data concerning Ander's customer activity follow:
Order-filling costs for Ander Company total £360,000, and sales-force costs are £375,000.
-Refer to Figure 1 above, what amount of order-filling costs would be allocated to the five smaller customers if these costs are allocated using an activity-based costing approach?

Question

Quizplus · Accepted Answer

The Answer of . Figure 1
Ander Company produces precision equipment for major buyers. Of the six customers, one accounts for 40 percent of the sales, with the remaining five accounting for the rest of the sales. The five smaller customers purchase equipment in roughly equal quantities. Orders placed by the smaller customers are about the same size. Data concerning Ander's customer activity follow:
Order-filling costs for Ander Company total £360,000, and sales-force costs are £375,000.
-Refer to Figure 1 above, what amount of order-filling costs would be allocated to the five smaller customers if these costs are allocated using an activity-based costing approach?

. Figure 1 Ander Company Produces Precision Equipment for Major Buyers. of the Buyers