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Shanghai Company sells glasses, fine china, and everyday dinnerware

Accounting

Shanghai Company sells glasses, fine china, and everyday dinnerware.

It uses activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $12 per pound. A box of glasses weighs 2 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds.


a Determine the shipping and handling activity cost to be allocated to each unit of product.


Glasses $
Fine China $
Everyday dinnerware $


b Determine the total shipping and receiving costs to be allocated to the fine china if 4,100 boxes are shipped.
$

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