Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has an activity rate of $20 per sales order, and the customer return activity has an activity rate of $100 per return. Jungle Junior sold 2,500 swing sets, which consisted of 750 orders and 80 returns. Determine (a) the total and (b) the per-unit sales order processing and customer return activity cost for swing sets

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses
activity-based costing to determine the cost of the sales order processing and the customer
return activity. The sales order processing activity has an activity rate of $20 per sales order, and
the customer return activity has an activity rate of $100 per return. Jungle Junior sold 2,500
swing sets, which consisted of 750 orders and 80 returns. Determine (a) the total and (b) the
per-unit sales order processing and customer return activity cost for swing sets.

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