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Tibet Company sells glasses, fine china, and everyday dinnerware. They use activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $9 per pound. A box of glasses weighs 2 lbs, the box of china weighs 4 lbs, and a box of everyday dinnerware weighs 6 lbs.
(a) Determine the shipping and handling activity for each product.
(b) Determine the total shipping and receiving costs for the china if 2,900 boxes are shipped.
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