signment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator.

Question

signment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator.; Activity-Based Costing: Selling and Administrative Expenses Comfort Step Company manufactures and sells shoes. Comfort Step uses activity-based costing to determine the cost of the sales order processing and the shipping activity. The sales order processing activity has an activity rate of $69 per sales order, and the shipping activity has an activity rate of $5 per shipment. Comfort Step sold 10,000 units of walking shoes, which consisted of 6,100 orders and 500 shipments. a. Determine the total sales order processing and shipping activity cost for walking shoes. 423,400 b. Determine the per-unit sales order processing and shipping activity cost for walking shoes. If required, rouid your answer to the nearest cent. 42.09X per unit Check My work Calculate (a) Nu activities to obtain the total. (b) Total cost from Req (a) + Number of product units per unit costs mber of activities x Activity rate per activity # Cost of activity associated with product. Sum both Learning Objective 5

Explanation / Answer

b. Cost per unit sales order processing and shipping activity for walking shoes

= Total cost from Req (a) / Number of product units

= $423,400/10,000

= $42.34 per Unit.

I think you have workings for req. (a) as already you completed.

Req A. Simple working

6100 Orders X $69 + 500 Shipments X $ 5 = $423,400

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.