Question

shanghai company sells glasses, fine china, and everyday dinnerware. it uses activity-based costing to determine the cost of the shipping and handling activity. the shipping and handling activity has an activity rate of $13 per pound. a box of glasses weighs 2 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a determine the shipping and handling activity cost to be allocated to each unit of product. glasses $fill in the blank 1 fine china $fill in the blank 2 everyday dinnerware $fill in the blank 3 b determine the total shipping and receiving costs to be allocated to the fine china if 2,000 boxes are shipped. $fill in the blank 4

Answer 1

Shipping cost per item: glasses 28, china 56, and dinnerware 84

(B) 3,500 boxes of china, 196,000 transportation cost

Explanation:\s(A)\shipping $14 a pound.

2 pounds times $14 equals 28 for a carton of glasses.

A box of daily dinnerware weights 6 pounds x $14 = 84 and a box of china weighs 4 lbs x $14 = 56.

(B) 3,500 pounds of china times 56 equals 196,000

What does "shipping cost" mean?

Costs associated with transporting cargo from Point A to Point B are commonly referred to as shipping costs. The cost of shipping may include a number of components, depending on the type of contract.

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