Ship Cartons Process Cartons

Freight 100% 0%
Warehouse Rent & Depreciation 0% 100%
Warehouse Distribution Personnel 0% 90%
Delivery Truck Expenses 0% 0%
Order Entry Expenses 0% 0%

Ac
Ship Cartons Process Cartons
Freight 450000 0
Warehouse Rent & Depreciation 0 2000000
Warehouse Distribution Personnel 0 2160000
Delivery Truck Expenses 0 0
Order Entry Expenses 0 0
Total 450000 4160000

Ship Cartons 450000 Number of cartons

Process Cartons 4160000 Number of cartons
Desktop Delivery 440000 Number of deliveries
Process Manual Customer Order 160000 Number of manual order
Enter Items Ordered(Manual) 600000 Number of Order Line
Process EDI Order 40000 EDI Order

Customer Margin- Activity Based Costing

Customer A
Item Rate/$ Number of Activity
Sales

Cost of Items Purchased

Operations Cost:
Processing Carton 52 200
Freight 6 200
Desktop Delivery 220 0
Orders(Manual) 10 6
Entering Items(Manual) 4 60
EDI Orders 5 6
Interest on Accounts Receivable 0 9000

Customer Margin
Profitability Percentage
 Activity Cost Pool
Desktop Delivery Process Manual Customer Order Enter Items Ordered(Manual) Process EDI Order
0% 0% 0% 0%
0% 0% 0% 0%
10% 0% 0% 0%
100% 0% 0% 0%
0% 20% 75% 5%

Activity Cost Pool-Amounts

Desktop Delivery Process Manual Customer Order Enter Items Ordered(Manual) Process EDI Order
0 0 0 0
0 0 0 0
240000 0 0 0
200000 0 0 0
0 160000 600000 40000
440000 160000 600000 40000

Rate for each activity

75000 6
80000 52
2000 220
16000 10
150000 4
8000 5

er Margin- Activity Based Costing

Customer B
Number of Activity
103000 104000

85000 85000
10400 200 10400
1200 150 900
0 25 5500
60 100 1000
240 180 720
30 0 0
900 30000 3000
12830 21520
5170 -2520
5.02% -2.42%
Total
100%
100%
100%
100%
100%

Total
450000
2000000
2400000
200000
800000
5850000