Bison Creek Company Is Preparing Its Annual Profit Plan Required:
A

Essay

Bison Creek Company is preparing its annual profit plan.As part of its analysis of the cost of its purchasing activity,management estimates that the $250,000 for purchasing support should be assigned to the individual vendors from the information given as follows: $$\begin{array} { | l c | c | c | } \hline & \text { Venolor } & \text { Venoor } & \text { Vendor } \\& \text { A } & \text { B } & \text { C } \\\hline \text { Units purchased } & 100,000 & 100,000 & 500,000 \\\hline \text { Purchase orders (annual) } & 12 & 24 & 50 \\\hline \begin{array} { l } \text { Number of shipments } \\\text { received }\end{array} & 12 & 52 & 100 \\\hline\end{array}$$
Required:
a.Prepare a schedule to allocate the purchasing costs to the three vendors,assuming Bison Creek uses units purchased to compute activity-based costs.b.Prepare a schedule to allocate the purchasing costs to the three vendors,assuming Bison Creek uses purchases orders to compute activity-based costs.c.Prepare a schedule to allocate the purchasing costs to the three vendors,assuming Bison Creek uses number of shipments to compute activity-based costs.