Lucky Clothing creates and sells t-shirts that can be customized. The cost of sales order processing and shipping is calculated using activity-based costing at Lucky Clothing. The sales order processing activity has a $9 per sales order activity rate, and the shipping activity has a $18 per shipment activity rate. Lucky Clothing sold a total of 25,300 personalized t-shirts, including 4,000 orders and 1,300 shipping. Calculate (A) the total activity cost and (B) the per-unit sales order processing and shipping activity cost for customizable t-shirts. Illustrate a computational solution. State your processes in a clear and logical fashion. (please help me :( I badly need your help.
Lucky Clothing creates and sells t-shirts that can be customized. The cost of sales order processing and shipping is calculated using activity-based costing at Lucky Clothing. The sales order processing activity has a $9 per sales order activity rate, and the shipping activity has a $18 per shipment activity rate. Lucky Clothing sold a total of 25,300 personalized t-shirts, including 4,000 orders and 1,300 shipping. Calculate (A) the total activity cost and (B) the per-unit sales order processing and shipping activity cost for customizable t-shirts. Illustrate a computational solution. State your processes in a clear and logical fashion. (please help me :( I badly need your help.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...
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Lucky Clothing creates and sells t-shirts that can be customized. The cost of sales order processing and shipping is calculated using activity-based costing at Lucky Clothing. The sales order processing activity has a $9 per sales order activity rate, and the shipping activity has a $18 per shipment activity rate. Lucky Clothing sold a total of 25,300 personalized t-shirts, including 4,000 orders and 1,300 shipping. Calculate (A) the total activity cost and (B) the per-unit sales order processing and shipping activity cost for customizable t-shirts. Illustrate a computational solution. State your processes in a clear and logical fashion. (please help me :( I badly need your help.
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