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Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity - based costing to determine the cost of the shipping and handling activity.
Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activitybased costing to determine the cost of the shipping and handling activity. The
shipping and handling activity has an activity rate of $ per pound. A box of glasses weighs pounds, a box of fine china weighs pounds, and a box of everyday
dinnerware weighs pounds.
a Determine the shipping and handling activity cost to be allocated to each unit of product.
Glasses
Fine China
Everyday dinnerware
$
b Determine the total shipping and receiving costs to be allocated to the fine china if boxes are shipped.
$
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