Question
Shanghai Company sells glasses, fine china, and everyday dinnerware. They use activity-based costing to determine the cost of the shipping and handling activity. The shipping
Shanghai Company sells glasses, fine china, and everyday dinnerware. They use activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $10 per pound. A box of glasses weighs 2 lbs., the box of china weighs 4 lbs., and a box of everyday dinnerware weighs 6 lbs.
aDetermine the shipping and handling activity for each product.
Glasses $____________
China $____________
Everyday dinnerware $____________
bDetermine the total shipping and receiving costs for the china if 6,400 boxes are shipped.
$__________
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