Question 5 (1 point) Ritz Company sells fine collectible statues and has impleme

Question

Question 5 (1 point) Ritz Company sells fine collectible statues and has implemented activty-based costing osts in he hippin artment tave been divided into three cost pools. The first cost pool contains costs that are related to packaging and shipping and Randhas determined that the number of boxes shipped is an appropriate cost driver for these costs. The second cost poot is made up of costs related to the final inspection of each item before it is shipped and the cost driver for this poot is the number of al items that are inspected and shipped. The finat cost poot is used for generat operations and supervision of the department and the cost driver is the number of shipments Information about the department is summarized below Total Costs Cost Driver Cost Pool Packaging and shipping Final inspection General operations and supervision 20,400 boxes $160,800 Number of boxes shipped $200,500 Number of inaivndual items shipped 96,700 items 9,200 orders 580,900 Number of orcers During the period, the boxes. What amount of shipping department cosca shouid se alocated to these sales? Far East sales office generated ese ercers fora rotal of 6,140 items. These orders were shipped in 1,316 Your Answer Answer save

Explanation / Answer

Cost Pool Total Costs Annual Activity Per Unit Total Units Far East Sales Office Total Cost Packaging and Shipping 160800 20400 7.882352941 1316 10373.17647 Final Inspection 200500 96700 2.073422958 6140 12730.81696 General Operations and Supervision 80900 9200 8.793478261 696 6120.26087 Sum 29224.2543

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.