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FedEx Corporation has identified three cost pools for its distribution center overhead costs: Sorting costs of $500,000, Transportation costs of $1,000,000, and Storage costs of
- FedEx Corporation has identified three cost pools for its distribution center overhead costs: Sorting costs of $500,000, Transportation costs of $1,000,000, and Storage costs of $300,000. The cost drivers are sorting orders, transportation miles, and storage space, respectively. If the company processed 50,000 sorting orders, traveled 100,000 miles for transportation, and utilized 20,000 square feet of storage space during the month, allocate the overhead costs to each activity.
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