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HW_18 2. 3. 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
HW_18 2. 3. 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. 7. 8. < 9. b. Determine the per-unit sales order processing and customer return activity cost for swing sets. per unit
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