Background: Haggar operates in two seasons each year. Spring = January to June,
ID: 2403669 • Letter: B
Question
Background: Haggar operates in two seasons each year. Spring = January to June, Fall = July to December Standard costs must be established and entered into the Blue Cherry system for each season. Because we have lead times in excess of 6 months, purchase orders that have been entered into Blue Cherry for the coming season are the source of the data used to calculate the standard cost. Please review each of the 3 styles below and recommend the standard cost that should be used. Note the overhead rate for the current season has been calculated to be $0.32 per unit. Style Vendor PO# Ship Terms Cost Units Duty Freight Broker OH KD00436 DDP- V.J. ONE GARMENT CO., LTD 2502982 DDP 10.37 7,510 KD00436 2502983 DDP 10.37 1,695 KD00436 2502984 DDP 10.37 5,876 KD00436 2502985 DDP 10.37 1,027 KD00436 2502986 DDP 10.37 2,256 KD00436 2502987 DDP 10.37 1,090 KD00436 2503003 DDP 10.43 4,054 KD00436 2503004 DDP 10.43 3,974 KD00436 2503005 DDP 10.43 1,687 KD00436 2503006 DDP 10.43 4,517 KD00436 2503007 DDP 10.43 4,403 KD00436 2503008 DDP 10.43 1,723 KD00436 2503009 DDP 10.43 2,282 KD00436 2503010 DDP 10.43 3,250 KD00436 2503011 DDP 10.43 3,755 KD00436 2503012 DDP 10.43 3,755 KD00436 2503052 DDP 10.43 1,117 KD00436 2503054 DDP 10.43 5,679 KD00436 2503055 DDP 10.43 4,032 KD00436 2503056 DDP 10.43 1,467 KD00436 2503057 DDP 10.43 2,008 KD00436 2503118 DDP 10.43 2,543 KD00436 2503119 DDP 10.43 9,321 KD00436 2503120 DDP 10.43 7,707 KD00436 2503121 DDP 10.43 1,051 KD00436 2503122 DDP 10.43 4,976 KD00436 2503123 DDP 10.43 1,273 KD00436 2503129 DDP 10.43 3,000 KD00436 2503156 DDP 10.43 5,382 KD00436 2503157 DDP 10.43 2,278 KD00436 DDP-WORLD YE APPARELS (BD) LTD 2502955 DDP 10.25 8,568 KD00436 2502956 DDP 10.25 2,033 KD00436 2502957 DDP 10.25 7,389 KD00436 2502958 DDP 10.25 1,589 KD00436 2502959 DDP 10.25 3,774 KD00436 2502960 DDP 10.25 1,073 KD00436 2502961 DDP 10.25 1,029 KD00436 2503135 DDP 10.32 5,700 KD00436 2503136 DDP 10.32 1,243 KD00436 2503137 DDP 10.32 4,748 KD00436 2503138 DDP 10.32 3,637 KD00436 2503139 DDP 10.32 3,881 KD00436 2503152 DDP 10.32 6,363 KD00436 2503153 DDP 10.32 1,084 Style Vendor PO# Ship Terms Cost Units Duty Freight Broker HC00236 DDP-WORLD YE APPARELS (BD) LTD 1028921 DDP 9.67 4,109 HC00236 1029532 DDP 9.67 11,685 HC00236 1030435 DDP 9.67 13,264 HC00236 1030436 DDP 9.67 5,180 HC00236 1030721 DDP 9.67 6,885 HC00236 1030722 DDP 9.67 3,368 HC00236 1031019 DDP 9.67 21,275 HC00236 1031020 DDP 9.67 3,786 HC00236 1031157 DDP 9.67 200 HC00236 FOB-UNIVOGUE GARMENTS - UNIT 1 1028595 FOB 7.32 6,352 2.04 0.25 0.01 HC00236 1028600 FOB 7.32 6,187 2.04 0.25 0.01 HC00236 1028604 FOB 7.32 1,025 2.04 0.25 0.01 HC00236 1028606 FOB 7.32 980 2.04 0.25 0.01 HC00236 1029001 FOB 7.32 7,710 2.04 0.25 0.01 HC00236 1029002 FOB 7.32 4,408 2.04 0.25 0.01 HC00236 1029003 FOB 7.32 3,952 2.04 0.25 0.01 HC00236 1029015 FOB 7.32 4,011 2.04 0.25 0.01 HC00236 1029019 FOB 7.32 4 2.04 0.25 0.01 HC00236 1029027 FOB 7.32 24 2.04 0.25 0.01 HC00236 1029537 FOB 7.32 8,452 2.04 0.25 0.01 HC00236 1029552 FOB 7.32 1,000 2.04 0.25 0.01 HC00236 1029574 FOB 7.32 1,000 2.04 0.25 0.01 HC00236 1029920 FOB 7.32 7,753 2.04 0.25 0.01 HC00236 1029921 FOB 7.32 2,980 2.04 0.25 0.01 HC00236 1029922 FOB 7.32 1,050 2.04 0.25 0.01 HC00236 1030192 FOB 7.32 3,725 2.04 0.25 0.01 Background: Haggar operates in two seasons each year. Spring = January to June, Fall = July to December Standard costs must be established and entered into the Blue Cherry system for each season. Because we have lead times in excess of 6 months, purchase orders that have been entered into Blue Cherry for the coming season are the source of the data used to calculate the standard cost. Please review each of the 3 styles below and recommend the standard cost that should be used. Note the overhead rate for the current season has been calculated to be $0.32 per unit. Style Vendor PO# Ship Terms Cost Units Duty Freight Broker OH KD00436 DDP- V.J. ONE GARMENT CO., LTD 2502982 DDP 10.37 7,510 KD00436 2502983 DDP 10.37 1,695 KD00436 2502984 DDP 10.37 5,876 KD00436 2502985 DDP 10.37 1,027 KD00436 2502986 DDP 10.37 2,256 KD00436 2502987 DDP 10.37 1,090 KD00436 2503003 DDP 10.43 4,054 KD00436 2503004 DDP 10.43 3,974 KD00436 2503005 DDP 10.43 1,687 KD00436 2503006 DDP 10.43 4,517 KD00436 2503007 DDP 10.43 4,403 KD00436 2503008 DDP 10.43 1,723 KD00436 2503009 DDP 10.43 2,282 KD00436 2503010 DDP 10.43 3,250 KD00436 2503011 DDP 10.43 3,755 KD00436 2503012 DDP 10.43 3,755 KD00436 2503052 DDP 10.43 1,117 KD00436 2503054 DDP 10.43 5,679 KD00436 2503055 DDP 10.43 4,032 KD00436 2503056 DDP 10.43 1,467 KD00436 2503057 DDP 10.43 2,008 KD00436 2503118 DDP 10.43 2,543 KD00436 2503119 DDP 10.43 9,321 KD00436 2503120 DDP 10.43 7,707 KD00436 2503121 DDP 10.43 1,051 KD00436 2503122 DDP 10.43 4,976 KD00436 2503123 DDP 10.43 1,273 KD00436 2503129 DDP 10.43 3,000 KD00436 2503156 DDP 10.43 5,382 KD00436 2503157 DDP 10.43 2,278 KD00436 DDP-WORLD YE APPARELS (BD) LTD 2502955 DDP 10.25 8,568 KD00436 2502956 DDP 10.25 2,033 KD00436 2502957 DDP 10.25 7,389 KD00436 2502958 DDP 10.25 1,589 KD00436 2502959 DDP 10.25 3,774 KD00436 2502960 DDP 10.25 1,073 KD00436 2502961 DDP 10.25 1,029 KD00436 2503135 DDP 10.32 5,700 KD00436 2503136 DDP 10.32 1,243 KD00436 2503137 DDP 10.32 4,748 KD00436 2503138 DDP 10.32 3,637 KD00436 2503139 DDP 10.32 3,881 KD00436 2503152 DDP 10.32 6,363 KD00436 2503153 DDP 10.32 1,084 Style Vendor PO# Ship Terms Cost Units Duty Freight Broker HC00236 DDP-WORLD YE APPARELS (BD) LTD 1028921 DDP 9.67 4,109 HC00236 1029532 DDP 9.67 11,685 HC00236 1030435 DDP 9.67 13,264 HC00236 1030436 DDP 9.67 5,180 HC00236 1030721 DDP 9.67 6,885 HC00236 1030722 DDP 9.67 3,368 HC00236 1031019 DDP 9.67 21,275 HC00236 1031020 DDP 9.67 3,786 HC00236 1031157 DDP 9.67 200 HC00236 FOB-UNIVOGUE GARMENTS - UNIT 1 1028595 FOB 7.32 6,352 2.04 0.25 0.01 HC00236 1028600 FOB 7.32 6,187 2.04 0.25 0.01 HC00236 1028604 FOB 7.32 1,025 2.04 0.25 0.01 HC00236 1028606 FOB 7.32 980 2.04 0.25 0.01 HC00236 1029001 FOB 7.32 7,710 2.04 0.25 0.01 HC00236 1029002 FOB 7.32 4,408 2.04 0.25 0.01 HC00236 1029003 FOB 7.32 3,952 2.04 0.25 0.01 HC00236 1029015 FOB 7.32 4,011 2.04 0.25 0.01 HC00236 1029019 FOB 7.32 4 2.04 0.25 0.01 HC00236 1029027 FOB 7.32 24 2.04 0.25 0.01 HC00236 1029537 FOB 7.32 8,452 2.04 0.25 0.01 HC00236 1029552 FOB 7.32 1,000 2.04 0.25 0.01 HC00236 1029574 FOB 7.32 1,000 2.04 0.25 0.01 HC00236 1029920 FOB 7.32 7,753 2.04 0.25 0.01 HC00236 1029921 FOB 7.32 2,980 2.04 0.25 0.01 HC00236 1029922 FOB 7.32 1,050 2.04 0.25 0.01 HC00236 1030192 FOB 7.32 3,725 2.04 0.25 0.01Explanation / Answer
Style Vendor PO# Ship Terms Cost Units Duty Freight Broker OH KD00436 DDP- V.J. ONE GARMENT CO., LTD 2502982 DDP 10.37 7,510 KD00436 2502983 DDP 10.37 1,695 KD 2503012 DDP 10.43 3,755 KD00436 2503052 DDP 10.43 1,117 KD00436 2503054 DDP 10.43 5,679 KD00436 2503055 DDP 10.43 4,032 KD00436 2503056 DDP 10.43 1,467 KD00436 2503057 DDP 10.43 2,008 KD00436 2503118 DDP 10.43 2,543 KD00436 2503119 DDP 10.43 9,321 KD00436 2503120 DDP 10.43 7,707 KD00436 2503121 DDP 10.43 1,051 KD00436 2503122 DDP 10.43 4,976 KD00436 2503123 DDP 10.43 1,273 KD00436 2503129 DDP 10.43 3,000 KD00436 2503156 DDP 10.43 5,382 KD00436 2503157 DDP 10.43 2,278 KD00436 DDP-WORLD YE APPARELS (BD) LTD 2502955 DDP 10.25 8,568 KD00436 2502956 DDP 10.25 2,033 KD00436 2502957 DDP 10.25 7,389 KD00436 2502958 DDP 10.25 1,589 KD00436 2502959 DDP 10.25 3,774 KD00436 2502960 DDP 10.25 1,073 KD00436 2502961 DDP 10.25 1,029 KD00436 2503135 DDP 10.32 5,700 KD00436 2503136 DDP 10.32 1,243 KD00436 2503137 DDP 10.32 4,748 KD00436 2503138 DDP 10.32 3,637 KD00436 2503139 DDP 10.32 3,881 KD00436 2503152 DDP 10.32 6,363 KD00436 2503153 DDP 10.32 1,084 Style Vendor PO# Ship Terms Cost Units Duty Freight Broker HC0
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