What amount of shipping department cost should be allocated to these sales? 2uest10n 5 1 point) Ritz

What amount of shipping department cost should be allocated to these sales?

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2uest10n 5 1 point) Ritz Company sells fine collectible statues and has implemented activity-based costing. Costs in the shipping department have been divided into three cost pools. The first cast pool contains costs that are related to packaging end shipping and Rand has determined that the number of boxes shipped is an appropriate cast driver tar these costs. The second cost pool is made up of costs related to the final inspection of each item before it is shipped end the cost driver for this pool is the number of individual items that are inspected and shipped. The finel cost pool is used tor general operations end supervision of the department and the cost driver is the number of shipments. Information about the department is summarized below: Packaging and shipping Finel inspection General operations and supervision Total costs Cost Driver 5161,000 Number of boxes shipped 5204500 Number of individual items shipped 583,800 Number of orders Annual Activity 24,400 boxes 99,500 items 8,700 orders During the period, the Far East sales office generated 680 orders for a total of 6,180 items. These orders were shipped in 1,365 boxes. What amount of shipping department costs should be allocated to these sales? Your Answer:

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