Godfrey Corporation Would Like to Institute an Activity-Based Costing System $\mathrm{A}$

question 151

Essay

Godfrey Corporation would like to institute an activity-based costing system to price products.The company's Purchasing Department incurs costs of $550,000 per year and has six employees.Purchasing has determined the three major activities that occur during the year.

Activity	Allocation Measure	# of People	Total Cost
Issuing purchase orders	# of purchase orders	1	$150,000
Reviewing receiving reports	# of receiving reports	2	$175,000
Making phone calls	# of phone calls	3	$225,000

During the year,50,000 phone calls were made in the department;15,000 purchase orders were issued;and 10,000 shipments were received.Product A required 200 phone calls,150 receiving reports,and 50 purchase orders.Product B required 350 phone calls,400 receiving reports,and 100 purchase orders.
a. Determine the amount of Purchasing Department cost that should be assigned to each of these products.
b. Determine Purchasing Department cost per unit if 1,500 units of Prochuct $\mathrm{A}$ and 3,000 units of Product $\mathrm{B}$ were manufactured during the year.

Analyze the objectives, achievements, and limitations of President Johnson's Great Society initiative.

Recognize key events and their significance within the context of 1960s American political and social movements, such as the Democratic National Convention of 1968, the Tet Offensive, and student protests.

Compare and contrast the contributions of Presidents Kennedy and Johnson to liberal domestic reforms.

Understand the causes, developments, and outcomes of the Cuban Missile Crisis.

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Definitions:

Constraints

Restrictions or limitations on the variables of a problem which define the conditions or boundaries within which a solution must be found.

Experimental Statistical Study

A research method involving the manipulation of one variable to determine if changes in one variable cause changes in another variable.

Cholera

An infectious disease caused by the bacterium Vibrio cholerae, leading to severe diarrhea and dehydration.

Polio

A viral disease that can affect nerves and lead to partial or full paralysis, largely eradicated in many countries through vaccination.