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A corporation reported the following information: Compute the shipment costs to be allocated to a product line of 50,000 units shipped in batches of 1,000

A corporation reported the following information:

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Compute the shipment costs to be allocated to a product line of 50,000 units shipped in batches of 1,000 each.

A. $0.40

B. $1.20

C. $30,000

D. $400

E. $20,000

Budgeted Quantity Total Budgeted of Cost-Allocation Cost Hierarchy IndirectBase Categorv Costs Product S350,000 Sustaining Budgeted Indirect Cost Rate Activity 2Design 80 parts- ?per part-square square foot feet 3Machine Output unit-level S585,000 10,000 productionper production machine-hour Operations machine- hours 4 Shipment Batch- $60,000 150shipments ?per shipment Setup level 5 Administration S225,00025,000Direct ?per direct manuf. labor- manuI labor hours hour

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