fS is family super market. They have 3 product lines Baked Goods= rev. $57,000, cogs 38,000 store support 11,400 (financail data), activity usage- po's 30, delivery 98, shelf stocking (hrs) 183, cs 15,500; Milk and Fruit Juice listed in the same order rev. $63,000, 47,000, 14,100, 25, 36, 166, cs 20,500; frozen products $52,000, 35,000, 10,500, 13, 28, 24 & cs is 7,900.
The activity cost rates are as follows: ordering $100 /po, del. & receipt of merchandise $80 / del., Shelf stocking $ 20 /hr, cs $.20 / item sold.
1. Use the simple costing system to prepare a product-line profitability report for FS.
2. Use the ABC system to prepare a product line profitability report for FS.