Assignment: Accounting issue: urgent please help Thank you!?
Bernacke Corp. is instituting an activity-based costing project in its 10-person purchasing department. Annual departmental overhead costs are $731,250. Because finding the best supplier takes the majority of effort in the department, most of the costs are allocated to this activity area. Many purchase orders are received in a single shipment.
activity: allocation: measurement quantity total costs
find best supplies number of phone calls 375000 375000
issue purchase order number of purchase 46875 187500
review receiving report number of receiving report 28125 168750
One special-order product manufactured by the company required the following purchasing department activities: 225 telephone calls, 50 purchase orders, and 25 receiving reports.
a. What amount of purchasing department cost should be assigned to this product?
b. If 100 units of the product are manufactured during the year, what is the purchasing department cost per unit? Round your answer to the nearest cent.
c. If purchasing department costs had been allocated using telephone calls as the allocation base, how much cost would have been assigned to this product? Round your answer to the nearest cent.