Hidden Valley Company Produces Precision Components Order-Filling Costs for Hidden Valley Company Total $180,000, and Sales-Force

question 126

Essay

Hidden Valley Company produces precision components. Hidden Valley has six customers, one of which accounts for 40 percent of the sales, with the remaining five accounting for the rest of the sales. The five smaller customers purchase components in roughly equal quantities. Orders placed by the smaller customers are about the same size. Data concerning Hidden Valley 's customer activity follow:
$$\begin{array} { l c c } & & \text { Five Small } \\& \text { Large Customer } & \text { Customers } \\\text { Units purchased } & 200,000 & 300,000 \\\text { Orders placed } & 10 & 350 \\\text { Number of sales calls } & 20 & 230\\\text { Manufacturing cost } &\$600,000&\$900,000\end{array}$$
Order-filling costs for Hidden Valley Company total $180,000, and sales-force costs are $275,000.
Required:
a. Allocate the order-filling and sales force costs to the customers based on sales volume.
b. Allocate the order-filling and sales force costs to the customers using an activity-based costing approach.

Understand the role and components of the blood-brain barrier.

Classify neurons based on their function and structure.

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Definitions:

Nathaniel Greene

A major general of the Continental Army in the American Revolutionary War, known for his successful military campaigns in the Southern theater.

Valley Forge

A historical site in Pennsylvania where the American Continental Army spent the winter of 1777-1778 during the American Revolutionary War, facing severe hardships.

American Soldiers

Members of the United States Armed Forces, serving in various branches including the Army, Navy, Air Force, Marine Corps, and Coast Guard.

Lack of Food

A situation where there is an insufficient supply of food to meet the nutritional needs of a population.