Rogers Company is preparing its annual profit plan. As part of its analysis of t

Question

Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $48,000 for purchasing support should be assigned to the individual vendors from the information given as follows:

What is the amount of the purchasing costs that should be allocated to Vendor B, assuming Rogers uses purchases orders to compute activity-based costs?

Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $48,000 for purchasing support should be assigned to the individual vendors from the information given as follows:

Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $48,000 for purchasing support should be assigned to the individual vendors from the information given as follows: What is the amount of the purchasing costs that should be allocated to Vendor B, assuming Rogers uses purchases orders to compute activity-based costs? $9,600. $16,000. $32,000. $38,400.

Explanation / Answer

$38,400

calculated as : $48,000*orders for B/Total orders

$48,000*24/30=$38,400

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