During the period the far east sales office generated 692 orders for a total of 6,130 items . these orders were shipped in 1,471 boxes . what ammount of shipping departments costs should be allocated to these sales?

Ritz Company sells fine collectible statues and has 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 and Rand has 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 and the cost driver for this pool is the number of individual items that are inspected and shipped. The final cost pool is used for general operations and supervision of the department and the cost driver is the number of shipments. Information about the department is summarized below: Annual Cost Pool Total Costs Cost Driver Activity Packaging and shipping 24,900 boxes shipped Final inspection $200,900 items shipped Number of individual 97,900 items General operations and $82,600 Number of orders 10,000 orders supervision $164,400 Number of boxes . |