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Determine the total activity costs for the return

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Reference no: EM132576585

Sebastian Company manufactures and sells sportswear products. Sebastian uses activity-based costing to determine the cost of the customer return processing and the shipping activity. The customer return processing activity has an activity rate of $60 per return, and the shipping activity has an activity rate of $20 per shipment. Sebastian shipped 4,000 units of Product 1 in 800 shipments (some shipments are more than one unit). There were 90 returns.

Question 1: Determine the total activity costs for the return and shipping activities of Product 1.

a. $21,400

b. $5,400

c. $71,200

d. $5,500

Reference no: EM132576585

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