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 an activity rate of $20 per sales order, and the customer return activity has an activity rate of $100 per return. Jungle Junior sold 2,500 swing sets, which consisted of 750 orders and 80 returns.

a. Determine the total sales order processing and customer return activity cost for swing sets. $fill in the blank 1

b. Determine the per-unit sales order processing and customer return activity cost for swing sets. Round your answer to the nearest cent. $fill in the blank 2 per unit

12. BE.18.05.ALGO

Activity-Based Costing for a Service Business

Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.20 per guest check-in, $19.00 per room cleaning, and $3.00 per served meal (not including food). Brian Lawson visited the hotel for a 3-night stay. Brian had 5 meals in the hotel during the visit.

Determine the total activity-based cost for Lawson's visit during the month. Round your answer to the nearest cent. $fill in the blank 1