Benton Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $48,000 for purchasing support should be assigned to the individual vendors from the information given as follows: Vendor AVendor BUnits purchased100,000200,000Purchase orders (annual)624Number of shipments received1252What is the amount of the purchasing costs that should be allocated to Vendor A, assuming Benton uses units purchased to compute activity-based costs?
A. $38,400.
B. $16,000.
C. $32,000.
D. $9,600.
Answer: B
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