Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Find reliable answers to your questions from a wide community of knowledgeable experts on our user-friendly Q&A platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
Answer:
1. $276,500
2. $328,950
Explanation:
1. Computation for the selling costs to be assigned to the "high-intensity" line of athletic wear for the month of March using the traditional product costing system
Traditional product costing = $395,000 * 70%
Traditional product costing = $276,500
Therefore the selling costs to be assigned to the "high-intensity" line of athletic wear for the month of March using the traditional product costing system is $276,500
2. Computation for the selling costs to be assigned to the "high-intensity" line of athletic wear for the month of March using activity-based costing
Activity based costing :
Sales commissions ($940,000*$0.05) $47,000
Advertising - TV (230*$300) $69,000
Advertising - internet (2,000*$10) 20,000
Catalogs (62,400*$2.50) $156,000
Cost of catalog sales (8,750*$1) 8,750
Credit and collection ($940,000*$0.03) $28,200
Selling cost $328,950
Therefore the selling costs to be assigned to the "high-intensity" line of athletic wear for the month of March using activity-based costing is $328,950
Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.