Answer Happy

Requirements (a) Using the current cost system's approach of assigning MSDA expenses to Cardinal Company's cost system assigns MSDA expenses to customers using a rate of 37% of sales revenue. The new controller has discovered that Cardinal's customers differ greatly in their ordering patterns and interaction with Cardinal's sales force. Because the controller believes Cardinal's cost system does not accurately assign MSDA expenses to customers, she developed an activity-based costing system to assign these expenses to customers. She then identified the following MSDA costs and additional information for two customers, Mandel and Bedell customers using a rate of 37% of sales revenue, determine the operating prof associated with Mandel and with Bedel (b) Using the activity-based costing information provided, determine the operating profit associated with Mandel and with Bedell (Click the icon to view the activity-based costs.) (c) Which of the two methods produces more accurate assignments of MSDA expenses to customers? Explain. (Click the loon to view the information) COD Requirement (a) Using the current cost system's approach of assigning MSDA expenses to customers using a rate of 37% of sales revenue, determine the operating profit associated with Mandel and with Bedell. (Round the profit percentages to two decimal places, XXX%) Mandel Bedell Sales Cost of goods sold Gross margin MSDA expenses Operating profit Profit percentage %
ULOvered that Cardinal's customers differ greatly in ns and interaction with Cardinal's sales force. Because the controller CO X Data table Mandel Bedell Sales Cost of goods sold By ing % Print $ 310,000 $ 160,000 Done 300,000 100,000 (a) Using the current cost system's approach of assigning MSDA expenses to Data table Mandel Bedell Sales representative travel $ Service customers Handle customer orders Ship to customers Print 9,000 $ 13,000 1,200 21,000 Done 37,000 118,000 9,000 74,000 hal nnmurer