Dakota Office Products

Dakota Office Products Study vitrine Why was Dakotas existing set system inadequate for its current direct environment? wins only when clients displace large clubhouses for cartons real drop of profit if many clients place small assures equipment casualty live determination for individual customers disparage speak to determination for raw(a) run provided by DOP (to small charges for the desktop delivery, whence the actual cost of it) 2. Develop an military action-base cost system for Dakota Office Products based on Year 200 data. Calculate the military action cost-driver rate for each DOP activity in 2000.Activity cost-driver rates Activity angiotensin converting enzyme deal cartons in and out of the zeal stray=(90% of Warehouse Personnel write off + Cost o Items Purchased)/cartons functioned pose=(90%*2,400,000+35,000,000)/80,000=464. 5 $/per carton Activity dickens the in the buff desktop delivery serve well treasure=(10% of Warehouse Personnel disbu rsal + Delivery Truck write downs)/desktop deliveries direct=(10%2,400,000+200,000)/2000=220 $/per carton Activity Three target handling Rate=( Warehouse expenses + Freight)/ public figure of tack togethers Rate=(2,000,000+450,000)/(16,000+8,000)=102. 08 $/per orderActivity cardinal data entry Rate= club entry expenses/ state barriers Rate=800,000/150,000=5. 3 orders/per business sector 3. Using your answer to marvel 2, calculate the profitability of Customer A and Customer B. Activity unmatched process cartons in and out of the installment arrive of cartons ordered Activity 2 the new desktop delivery serving public figure of desktop deliveries Activity Three order handling fare of orders (manual + EDI) Activity 4 data entry human body of line items Manufacturing Overhead cost-driver rates Customer A Customer B Customer ADakota Office ProductsDakota Office Products Study eggshell Why was Dakotas existing set system inadequate for its current run environment? profits only when clients displace large orders for cartons real drop of profit if many clients place small orders treatly cost determination for individual customers wrong cost determination for new function provided by DOP (to small charges for the desktop delivery, then the actual cost of it) 2. Develop an activity-base cost system for Dakota Office Products based on Year 200 data. Calculate the activity cost-driver rate for each DOP activity in 2000.Activity cost-driver rates Activity One process cartons in and out of the facility Rate=(90% of Warehouse Personnel Expense + Cost o Items Purchased)/cartons processed Rate=(90%*2,400,000+35,000,000)/80,000=464. 5 $/per carton Activity Two the new desktop delivery service Rate=(10% of Warehouse Personnel Expense + Delivery Truck Expenses)/desktop deliveries Rate=(10%2,400,000+200,000)/2000=220 $/per carton Activity Three order handling Rate=( Warehouse Expenses + Freight)/ itemise of orders Rate=(2,000,000+450,000)/(16,000+ 8,000)=102. 08 $/per orderActivity four-spot data entry Rate=Order entry expenses/Order lines Rate=800,000/150,000=5. 3 orders/per line 3. Using your answer to question 2, calculate the profitability of Customer A and Customer B. Activity One process cartons in and out of the facility Number of cartons ordered Activity Two the new desktop delivery service Number of desktop deliveries Activity Three order handling Number of orders (manual + EDI) Activity four-spot data entry Number of line items Manufacturing Overhead cost-driver rates Customer A Customer B Customer A