Grouse Inc. is a small distributor of mechanical pencils. Grouse identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the activity and cost pool details.) Data table Activity 1. Placing and paying for orders of pencil packs 2. Receiving and storage 3. Shipping of pencil packs to retailers Cost Driver Number of orders Loads moved For 2019, Grouse buys 250,000 pencil packs at an average cost of $5 per pack and sells them to retailers at an average price of $9 per pack. Assume Grouse has no fixed costs and no inventories. Calculate Grouse's operating income for 2019. Number of shipments Quantity of Cost per Unit of Cost Cost Driver Driver 600 4,000 $60 per load 1,500 $100 per order $90 per shipment

Grouse Inc. is a small distributor of mechanical pencils. Grouse identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the activity and cost pool details.) Data table Activity 1. Placing and paying for orders of pencil packs 2. Receiving and storage 3. Shipping of pencil packs to retailers Cost Driver Number of orders Loads moved For 2019, Grouse buys 250,000 pencil packs at an average cost of $5 per pack and sells them to retailers at an average price of $9 per pack. Assume Grouse has no fixed costs and no inventories. Calculate Grouse's operating income for 2019. Number of shipments Quantity of Cost per Unit of Cost Cost Driver Driver 600 4,000 $60 per load 1,500 $100 per order $90 per shipment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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