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Hi John,
Kind apologies. This question is from a test provided by my learning provider and it only had the final solution to it. I wanted to check where I went wrong in my workings/Steps. However, I revisited my working and have understood. Thank you 🙂
Hi John, The below question relates to ABC costing. I’m unable to edit the header. Could you please tell me how to solve this (workings)?
Themens Co uses activity based costing. The budgeted distribution costs for the next year are transport costs amounting to $2,631,200 and order processing costs amounting to $1,573,000.
It is estimated that in the next year, 325,000 orders will be processed and that the delivery vehicles will travel 1,495,000 km. A customer has indicated that 138 orders, each of which will require a journey of 122 km will be placed in the next year.
To the nearest two decimal places, what is the distribution cost for this customer?
