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Rand Company sells fine collectible statues and has implemented activitybased costing. Costs in the shipping department have been divided into three cost pools. The first
Rand Company sells fine collectible statues and has implemented activitybased 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: How much are the packaging and shipping costs for each box shipped
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