Johnson Beverage, Inc
Essay by pedrolopes10 • May 2, 2017 • Case Study • 870 Words (4 Pages) • 1,462 Views
MANAGEMENT ACCOUNTING II
JOHNSON BEVERAGE, INC.
Submitted by Group 5
- Prepare the report of customer profitability for the four selected customers as well as for the whole Company using the ABC methodology.
Product Handling | Taking orders from customers | Delivering the product | Expediting deliveries | Sales visits to customers | |
Salaries | € 338.000,00 | € 26.000,00 | € 26.000,00 | € 104.000,00 | € 26.000,00 |
Social Security | € 78.000,00 | € 6.500,00 | € 19.500,00 | € 19.500,00 | € 6.500,00 |
Insurance | € 3.000,00 | € 0,00 | € 1.000,00 | € 10.000,00 | € 6.000,00 |
Advertising | € 0,00 | € 0,00 | € 0,00 | € 0,00 | € 20.000,00 |
Rental charges | € 33.000,00 | € 12.000,00 | € 3.000,00 | € 6.000,00 | € 6.000,00 |
Depreciation | € 7.000,00 | € 1.500,00 | € 8.750,00 | € 6.500,00 | € 1.250,00 |
Office supplies | € 2.000,00 | € 24.000,00 | € 2.000,00 | € 4.000,00 | € 8.000,00 |
Telephone | € 0,00 | € 24.500,00 | € 8.750,00 | € 0,00 | € 1.750,00 |
Training | € 7.500,00 | € 0,00 | € 15.000,00 | € 0,00 | € 2.500,00 |
Utilities | € 24.600,00 | € 1.500,00 | € 3.000,00 | € 900,00 | € 0,00 |
Taxes | € 8.900,00 | € 0,00 | € 0,00 | € 1.100,00 | € 0,00 |
Consulting services | € 55.000,00 | € 0,00 | € 0,00 | € 0,00 | € 0,00 |
Maintenance | € 35.000,00 | € 4.000,00 | € 5.000,00 | € 2.000,00 | € 4.000,00 |
Travel costs | € 0,00 | € 0,00 | € 48.000,00 | € 24.000,00 | € 8.000,00 |
Other expenses | € 80.000,00 | € 0,00 | € 0,00 | € 20.000,00 | € 0,00 |
Total | € 672.000,00 | € 100.000,00 | € 140.000,00 | € 198.000,00 | € 90.000,00 |
Cost | Cost Driver | Total # | Unit € | |
Product Handling | € 672.000,00 | # of cases sold | 800000 | € 0,84 |
Taking orders from customers | € 100.000,00 | # of purchase orders | 500 | € 200,00 |
Delivering the product | € 140.000,00 | # of miles travelled | 44800 | € 3,13 |
Expediting deliveries | € 198.000,00 | # of expedited deliveries | 2500 | € 79,20 |
Sales visits to customers | € 90.000,00 | # of sales visits | 360 | € 250,00 |
Total | € 1.200.000,00 |
Saver Superstore | Oscar's OddLots | Midwellen Supermarket | Downtown Retail | |
Product Handling | 80000 | 80000 | 8000 | 30000 |
Taking orders from customers | 16 | 40 | 20 | 30 |
Delivering the product | 550 | 7600 | 2200 | 920 |
Expediting deliveries | 10 | 250 | 130 | 90 |
Sales visits to customers | 12 | 25 | 18 | 9 |
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