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 servicing goods.(Note: Round answer to two decimal places.)

A) $1,089.25 per service call
B) $750.10 per service call
C) $680.50 per service call
D) $1,000.54 per service call
E) $672.41 per service call

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 servicing goods.(Note: Round answer to two decimal places.)
  
A) $1,089.25 per service call 
B) $750.10 per service call 
C) $680.50 per service call 
D) $1,000.54 per service call 
E) $672.41 per service call

Quizplus · Accepted Answer

Activity rate for servicing goods = Cost of servicing goods / Total number of service calls = $195,000 / 290 service calls (200 service calls + 90 service calls) = $672.41 per service call

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