Profitability of Customers: (Put your answers on the chart below. Show your work.)
Overhead Allocated to:
Sales and Cost of Goods Sold are:
A rather large candy company is attempting to determine the profitability of each of their customers. They are applying activity based costing methods to their overhead costs for marketing administrative, collection and customer service cost. Determine the amount of overhead allocated to the customers below using activity based costing to allocate the overhead.
The Overhead costs and related cost drivers are as follows:

Required:
1) Compute the amount of overhead allocated to Customers X, Y, and Z
2) Compute the profitability of Customers X, Y, and Z

Question

Profitability of Customers:  (Put your answers on the chart below. Show your work.)
Overhead Allocated to:
  Sales and Cost of Goods Sold are:
  A rather large candy company is attempting to determine the profitability of each of their customers. They are applying activity based costing methods to their overhead costs for marketing administrative, collection and customer service cost. Determine the amount of overhead allocated to the customers below using activity based costing to allocate the overhead.
The Overhead costs and related cost drivers are as follows:
 
Required:
1) Compute the amount of overhead allocated to Customers X, Y, and Z
2) Compute the profitability of Customers X, Y, and Z

Quizplus · Accepted Answer

The Answer of Profitability of Customers:  (Put your answers on the chart below. Show your work.)
Overhead Allocated to:
  Sales and Cost of Goods Sold are:
  A rather large candy company is attempting to determine the profitability of each of their customers. They are applying activity based costing methods to their overhead costs for marketing administrative, collection and customer service cost. Determine the amount of overhead allocated to the customers below using activity based costing to allocate the overhead.
The Overhead costs and related cost drivers are as follows:
 
Required:
1) Compute the amount of overhead allocated to Customers X, Y, and Z
2) Compute the profitability of Customers X, Y, and Z

Profitability of Customers: (Put Your Answers on the Chart