Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors.The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders.Both types of distributors purchase the same product.The customer activities and costs for the previous quarter are as follows:
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Calculate the activity rate for processing sales orders.(Note: Round answer to two decimal places.)

A) $330.09 per sales order
B) $525.33 per sales order
C) $275.76 per sales order
D) $301.89 per sales order
E) $342.43 per sales order

Question

Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors.The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders.Both types of distributors purchase the same product.The customer activities and costs for the previous quarter are as follows:
-
 Calculate the activity rate for processing sales orders.(Note: Round answer to two decimal places.)

A) $330.09 per sales order 
B) $525.33 per sales order 
C) $275.76 per sales order 
D) $301.89 per sales order 
E) $342.43 per sales order

Quizplus · Accepted Answer

Activity rate for processing sales orders = Cost of processing sales orders / Total number of sales orders = $160,000 / 530 sales orders (500 sales orders + 30 sales orders) = $301.89 per sales order

Workshape Manufacturing Has Two Classes of Distributors: JIT Distributors and Non-JIT