uestion 15pts

Activity based costing (ABC) has determined that the shipment setup costs should be accounted for at the batch-level of activities. ABC believes that the costs assigned to the shipment setup for the current period will be $440,000. ABC is estimating that there will be 400 shipments totalling 8,000 units during the current period. Compute the cost that should be allocated to each shipment.

Group of answer choices

• $110.
• $55.
• $550.
• $1,100.

Question 25pts

The Lots More Store has a Janitorial Department and a Personnel Department that provide services to three Sales Departments. The Janitorial Department cost is allocated based on space and the Personnel Department cost is allocated because of employees. The following information is available.

The following data are available: Direct costs Square feet occupied Direct labour hours Service Department: X $300,000 6,000 13,000 Y $225,000 4,000 7,000 $480,000 2,000 4,000 Producing Department: $750,000 10,000 20,000 P2 $600,000 6,000 10,000Personnel Janitorial Sales #1 Sales #2 Sales #3 Budget 45,000 30,000 Space (sq m) 20,000 30,000 50,000 No. of Employees 10 15 45 30Jan Feb Mar Apr Cash sales $18,000 $28,800 $21,600 $16,800 Credit sales $120,000 $144,000 $108,000 $84,000