Activity Reviewing sales invoices Initiating shipping orders Making phone calls Allocation Measure Number of Sales invoices Number of shipping orders i Number of phone calls Number of People 2 3 4 Total Cost $175,000 $270,000 $330,000 During the year, 60,000 phone calls were made in the department; 25,000 sales invoices were reviewed, and 15,000 shipments were initiated Product 101 required 300 phone calls, 225 sales invoice reviews, and 175 shipping orders. Product 102 required 400 phone calls, 500 sales invoice reviews, and 350 shipping orders. a. Determine the amount of Shipping Department cost that should be assigned to each of these products. b. Determine Shipping Department cost per unit if 2,500 units of Product 101 and 5,000 units of Product 102 were sold during the year
Activity Reviewing sales invoices Initiating shipping orders Making phone calls Allocation Measure Number of Sales invoices Number of shipping orders i Number of phone calls Number of People 2 3 4 Total Cost $175,000 $270,000 $330,000 During the year, 60,000 phone calls were made in the department; 25,000 sales invoices were reviewed, and 15,000 shipments were initiated Product 101 required 300 phone calls, 225 sales invoice reviews, and 175 shipping orders. Product 102 required 400 phone calls, 500 sales invoice reviews, and 350 shipping orders. a. Determine the amount of Shipping Department cost that should be assigned to each of these products. b. Determine Shipping Department cost per unit if 2,500 units of Product 101 and 5,000 units of Product 102 were sold during the year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Activity
Reviewing sales invoices
Initiating shipping orders
Making phone calls
Allocation Measure
Number of Sales invoices
Number of shipping orders
Number of phone calls
Number of People
2
3
4
Total Cost
$175,000
$270,000
$330,000
During the year, 60,000 phone calls were made in the department, 25,000 sales invoices were reviewed, and 15,000 shipments were initiated Product 101 required 300 phone calls, 225 sales invoice reviews, and 175 shipping
orders. Product 102 required 400 phone calls, 500 sales invoice reviews, and 350 shipping orders.
a. Determine the amount of Shipping Department cost that should be assigned to each of these products.
b. Determine Shipping Department cost per unit if 2,500 units of Product 101 and 5,000 units of Product 102 were sold during the year
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