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ID: 2578129 • Letter: G
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gnment/takeAssignmentMain.do?nvoker-assignments&takeAssignmentSessionLocatore.; Activity-Based Costing: Selling and Administrative Expenses Comfort Step Company manufactures and sells shoes. Com determine the cost of the sales order processing and the shipping activity. The sales order processing activity has an activity rate of $69 per sales order, and the shipping activity activity rate of $5 per shipment. Comfort step sold 10,000 units of walking shoes, which consisted of 6,100 orders and 500 shipments. fort Step uses activity-based costing to has an a. Determine the total sales order processing and shipping activity cost for walking shoes. b. Determine the per-unit sales order processing and shipping activity cost for walking shoes. If required, round your answer to the nearest cent. per unitExplanation / Answer
Answer =A) CALCULATION OF TOTAL COST FOR WALKING SHOES Activity Activity Rate Sales Order Processing Activity $ 69 Per sale Order Total Orders = 6,100.00 Orders Sales Order Processing Cost (A) = $ 4,20,900 Activity Activity Rate Shipment cost for one activity $ 5 Per Shipment Total Orders = 500.00 Orders Sales Order Processing Cost (B)= $ 2,500 Total Cost = (A+B) $ 4,23,400 Answer =B) Calculation of per unit sales order processing cost Per unit Saels order processing Cost = Total order processing Cost / Total No.'s of units Per unit Saels order processing Cost = $ 420,900 / 10,000 units Per unit Saels order processing Cost =42.09 Per unit Calculation of per unit Shipping Activity Cost Per unit Shipping Activity Cost = Total Shipping ActivityCost / Total No.'s of units Per unit Shipping Activity Cost = $ 2500 / 10,000 Per unit Shipping Activity Cost = 0.25 Per unit
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