Business, 22.02.2020 03:29, andr8aa

Activity-Based Costing: Selling and Administrative Expenses

Fancy Feet Company manufactures and sells shoes. Fancy Feet 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 $12 per sales order, and the shipping activity has an activity rate of $20 per shipment. Fancy Feet sold 27,500 units of walking shoes, which consisted of 5,000 orders and 1,400 shipments.

a. Determine the total sales order processing and shipping activity cost for walking shoes.
$

b. Determine the per-unit sales order processing and shipping activity cost for walking shoes. Round your answer to the nearest cent.
$ per unit

Answers: 3

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Activity-Based Costing: Selling and Administrative Expenses

Fancy Feet Company manufactu...