1 What Is The Total Budgeted Cost For Each Activity And For The Business Services Di 2904032

1. What is the total budgeted cost for each activity and for the Business Services Division in January 2013? 2. Assume, in contrast to Requirement 1, that activity-related information was not available to the accountant. Rather, the only information at her disposal is that budgeted fixed costs for the month are $1,000,000 and the budgeted variable cost per carton is estimated as $1.30. What is the total cost for the month using this single volume-based approach? Compare and comment on the difference in answers to Requirements 1 and 2. 3. Dories Supply Chain Management Company offers to install an electronic order-processing system that transmits customer requisitions via the Internet to the Business Services Division for immediate pick, packing, and delivery. No requisition handling and data entry will be needed once the system is fully functional. How much savings can the Business Services Division expect from switching to the new system before considering the payment to Dories? What would be necessary in order for the company to be able to realize these estimated cost savings? Can you estimate the amount of savings if the firm uses a single cost rate (based on the number of cartons delivered) to determine the budgeted cost for the division?

 

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