Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing to determine the...

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Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing to determine the cost of

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Answer 1

Answer #1

a.

Determination of shipping and handling activity cost to be allocated to each unit of product:

Glasses = 2 Pounds * $10 per Pounds = $20

Fine China = 4 Pounds * $10 per pounds = $40

Everyday dinnerware = 6 pounds * $10 per pounds = $60

b.

Total shipping & receiving cost allocated to be fine china = 2600 boxes * $40 = $104000

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Answer 2

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