Activity-Based Costing: Selling and Administrative Expenses

Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has anactivity rateof $84 per sales order, and the customer return activity has an activity rate of $20 per return. Jungle Junior sold 10,000 swing sets, which consisted of 2,700 orders and 200 returns.

a.Determine the total sales order processing and customer return activity cost for swing sets.

$

b.Determine the per-unit sales order processing and customer return activity cost for swing sets. If required, round your answer to the nearest cent.

$ per unit