Please Do not Give image formatAllocate manufacturing, ordering, and selling costs to the two customer groups by using an activity-based management (ABM) allocation basis. Calculate the net profit before tax (NPBT) for each customer group using an ABM allocation basis. Table 2: Data from process activity analysis using ABM for the year ended 31 March 2023Large national IndependentTotalsmall retailerFlat-pack units soldOrders placedNumber of sales and administrative calls or emailsSelling price per shelving per flat-packManufacturing costsOrder filling costsSalesforce and administrative costsretailerscustomers84,000150150$125$4,200,000$3,000$15,000customers16,000400360$210$800,000$8,000$36,000100,000550510$5,000,000$11,000$51,000

ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring performance.…

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 12EA: What are the total costs to account for if a companys beginning inventory had $231,432 in materials,...

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Please Do not Give image format Allocate manufacturing, ordering, and selling costs to the two customer groups by using an activity-based management (ABM) allocation basis. Calculate the net profit before tax (NPBT) for each customer group using an ABM allocation basis.

Table 2: Data from process activity analysis using ABM for the year ended 31 March 2023
Large national Independent
Total
small retailer
Flat-pack units sold
Orders placed
Number of sales and administrative calls or emails
Selling price per shelving per flat-pack
Manufacturing costs
Order filling costs
Salesforce and administrative costs
retailers
customers
84,000
150
150
$125
$4,200,000
$3,000
$15,000
customers
16,000
400
360
$210
$800,000
$8,000
$36,000
100,000
550
510
$5,000,000
$11,000
$51,000

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