Exercise 4-35 Name:
Insert amounts in the gray-shaded cells of columns C, E, and G.
If an answer is incorrect the word “Wrong” will appear.
a. Cost of finding best suppliers 375,000$
Number of phone calls made 75,000
Cost per phone call 5.00$
Cost to issue purchase orders 187,500$
Number of purchase orders issued 46,875
Cost per purchase order 4.00$
Cost to review receiving reports 168,750$
Number of receiving reports 28,125
Cost per receiving report 6.00$
Units x Rate
Phone calls made 25 5.00$ 125$
Purchase orders issued 50 4.00$ 200
Receiving reports reviewed 35 6.00$ 210
Total cost assigned 535$
b. Purchasing Department cost assigned
to special order 535$
Number of units 100
Purchasing Department cost per unit
(rounded to nearest cent) 5.35$
c. Total costs 731,250$
Total number of calls 75,000
Cost per call (rate) 9.75$
Number of calls for special order 25
Cost assigned to special order 243.75$
Cost Assignment of Special Order:
Solution