Question
Activity-based costing: selling and administrative expenses Play-Time Company manufactures and sells outdoor play equipment. Play-Time uses activity-based costing to determine the cost of the sales
Activity-based costing: selling and administrative expenses
Play-Time Company manufactures and sells outdoor play equipment. Play-Time 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 $18 per sales order, and the customer return activity has an activity rate of $60 per return. Play-Time sold 1,250 swing sets, which consisted of 1,000 orders and 75 returns.
a. Determine the total sales order processing and customer return activity cost for swing sets. fill in the blank 1 of 1$
b. Determine the per-unit sales order processing and customer return activity cost for swing sets. fill in the blank 1 of 1$ per unit
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