ABC Co implemented activity based costing Costs in the shipping department have been divided into three cost pools The first cost pool contains costs that are related to packaging and shipping ABC determined that the number of boxes shipped is an appropriate cost driver for these costs The second cost pool is made up of costs related to the final inspection of each item before it is shipped The cost driver for this pool is the number of individual items that are inspected The third cost pool is used for general operations of the department and the cost driver is the number of orders Cost Pool Estimated Total Costs Cost Driver Estimated Annual Activity Packaging Shipping $67,200 Number of boxes shipped 16,000 boxes Inspection $200,000 Number items inspected 100,000 items General Operations $85,000 Number of orders 10,000 orders During the period, 4,000 items were sold, reflecting 800 orders that were packed and shipped in 2,100 boxes What amount is allocated to each order for general operations of the department ABC Co implemented activity based costing Costs in the shipping department have been divided into three cost pools The first cost pool contains costs that are related to packaging and shipping ABC determined that the number of boxes shipped is an appropriate cost driver for these costs The second cost pool is made up of costs related to the final inspection of each item before it is shipped The cost driver for this pool is the number of individual items that are inspected The third cost pool is used for general operations of the department and the cost driver is the number of orders Cost Pool Estimated Total Costs Cost Driver Estimated Annual Activity Packaging Shipping $67,200 Number of boxes shipped 16,000 boxes Inspection $200,000 Number items inspected 100,000 items General Operations $85,000 Number of orders 10,000 orders During the period, 4,000 items were sold, reflecting 800 orders that were packed and shipped in 2,100 boxes What amount is allocated to each order for general operations of the department $12 75 $10 00 $8 50 $14 20 $4 20 Question at position 2 2 Question at position 2 ABC Co implemented activity based costing Costs in the shipping department have been divided into three cost pools The first cost pool contains costs that are related to packaging and shipping ABC determined that the number of boxes shipped is an appropriate cost driver for these costs The second cost pool is made up of costs related to the final inspection of each item before it is shipped The cost driver for this pool is the number of individual items that are inspected The third cost pool is used for general operations of the department and the cost driver is the number of orders Cost Pool Estimated Total Costs Cost Driver Estimated Annual Activity Packaging Shipping $67,200 Number of boxes shipped 16,000 boxes Inspection $200,000 Number items inspected 100,000 items General Operations $85,000 Number of orders 10,000 orders An order is shipped to a retail customer who has ordered 8 individual items This order will be shipped in 4 separate boxes What is the packing and shipping cost that will be allocated to the order ABC Co implemented activity based costing Costs in the shipping department have been divided into three cost pools The first cost pool contains costs that are related to packaging and shipping ABC determined that the number of boxes shipped is an appropriate cost driver for these costs The second cost pool is made up of costs related to the final inspection of each item before it is shipped The cost driver for this pool is the number of individual items that are inspected The third cost pool is used for general operations of the department and the cost driver is the number of orders Cost Pool Estimated Total Costs Cost Driver Estimated Annual Activity Packaging Shipping $67,200 Number of boxes shipped 16,000 boxes Inspection $200,000 Number items inspected 100,000 items General Operations $85,000 Number of orders 10,000 orders An order is shipped to a retail customer who has ordered 8 individual items This order will be shipped in 4 separate boxes What is the packing and shipping cost that will be allocated to the order $8 40 $4 20 $18 60 $12 60 $16 80

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ABC Co. implemented activity-based costing. Costs in the shipping department have been divided into three cost pools. The first cost pool contains costs that are

ABC Co. implemented activity-based costing. Costs in the shipping department have been divided into three cost pools.

The first cost pool contains costs that are related to packaging and shipping. ABC determined that the number of boxes shipped is an appropriate cost driver for these costs.

The second cost pool is made up of costs related to the final inspection of each item before it is shipped. The cost driver for this pool is the number of individual items that are inspected.

The third cost pool is used for general operations of the department and the cost driver is the number of orders.

Cost Pool	Estimated Total Costs	Cost Driver	Estimated Annual Activity
Packaging & Shipping	$67,200	Number of boxes shipped	16,000 boxes
Inspection	$200,000	Number items inspected	100,000 items
General Operations	$85,000	Number of orders	10,000 orders

During the period, 4,000 items were sold, reflecting 800 orders that were packed and shipped in 2,100 boxes. What amount is allocated to each order for general operations of the department?

ABC Co. implemented activity-based costing. Costs in the shipping department have been divided into three cost pools.

The first cost pool contains costs that are related to packaging and shipping. ABC determined that the number of boxes shipped is an appropriate cost driver for these costs.

The second cost pool is made up of costs related to the final inspection of each item before it is shipped. The cost driver for this pool is the number of individual items that are inspected.

The third cost pool is used for general operations of the department and the cost driver is the number of orders.

Cost Pool	Estimated Total Costs	Cost Driver	Estimated Annual Activity
Packaging & Shipping	$67,200	Number of boxes shipped	16,000 boxes
Inspection	$200,000	Number items inspected	100,000 items
General Operations	$85,000	Number of orders	10,000 orders

During the period, 4,000 items were sold, reflecting 800 orders that were packed and shipped in 2,100 boxes. What amount is allocated to each order for general operations of the department?

$12.75

$10.00

$8.50

$14.20

$4.20

Question at position 2

ABC Co. implemented activity-based costing. Costs in the shipping department have been divided into three cost pools.

The first cost pool contains costs that are related to packaging and shipping. ABC determined that the number of boxes shipped is an appropriate cost driver for these costs.

The second cost pool is made up of costs related to the final inspection of each item before it is shipped. The cost driver for this pool is the number of individual items that are inspected.

The third cost pool is used for general operations of the department and the cost driver is the number of orders.

Cost Pool	Estimated Total Costs	Cost Driver	Estimated Annual Activity
Packaging & Shipping	$67,200	Number of boxes shipped	16,000 boxes
Inspection	$200,000	Number items inspected	100,000 items
General Operations	$85,000	Number of orders	10,000 orders

An order is shipped to a retail customer who has ordered 8 individual items. This order will be shipped in 4 separate boxes. What is the packing and shipping cost that will be allocated to the order?

ABC Co. implemented activity-based costing. Costs in the shipping department have been divided into three cost pools.

The first cost pool contains costs that are related to packaging and shipping. ABC determined that the number of boxes shipped is an appropriate cost driver for these costs.

The second cost pool is made up of costs related to the final inspection of each item before it is shipped. The cost driver for this pool is the number of individual items that are inspected.

The third cost pool is used for general operations of the department and the cost driver is the number of orders.

Cost Pool	Estimated Total Costs	Cost Driver	Estimated Annual Activity
Packaging & Shipping	$67,200	Number of boxes shipped	16,000 boxes
Inspection	$200,000	Number items inspected	100,000 items
General Operations	$85,000	Number of orders	10,000 orders

An order is shipped to a retail customer who has ordered 8 individual items. This order will be shipped in 4 separate boxes. What is the packing and shipping cost that will be allocated to the order?

$8.40

$4.20

$18.60

$12.60

$16.80