What amount of shipping department costs

Assignment Help Accounting Basics
Reference no: EM131600424

Problem - Ritz Company sells fine collectible statues and has implemented activity-based costing. Costs in the shipping department have been divided into three cost pools. The first cost pool contains costs that are related to packaging and shipping and Rand has determined that the number of boxes shipped is an appropriate cost driver for these costs. The second cost pool is made up of costs related to the final inspection of each item before it is shipped and the cost driver for this pool is the number of individual items that are inspected and shipped. The final cost pool is used for general operations and supervision of the department and the cost driver is the number of shipments. Information about the department is summarized below:

Cost Pool Total Costs Cost Driver Annual Activity

Packaging and shipping $168,500

Number of boxes shipped 21,400 boxes

Final inspection $199,500

Number of individual items shipped 98,500 items

General operations and supervision $84,500

Number of orders 9,500 orders

Required - During the period, the Far East sales office generated 669 orders for a total of 6,010 items. These orders were shipped in 1,385 boxes. What amount of shipping department costs should be allocated to these sales?

Reference no: EM131600424

Questions Cloud

Select two different types of hospitals : Select two different types of hospitals. Identify the institutional similarities and differences in dealing with uncompensated care delivery.
What price should be charged : If the company marks up total cost by 0.45, what price should be charged if 61,000 units are expected to be sold
Giving bad news to a job applicant : SCENARIO- You are the hiring manager for a mid-sized company. You have narrowed the applicants for a managerial position to two: First
How much of the company profit should be placed in the bank : Which bank would you recommend, and how much of the company's profit should be placed in the bank?
What amount of shipping department costs : These orders were shipped in 1,385 boxes. What amount of shipping department costs should be allocated to these sales
Evidence-based interventions for populations : Identify two valid and reliable sources for evidence-based interventions for populations.
Statistics differ from descriptive statistics : Explain how inferential statistics differ from descriptive statistics, why inferential statistical methods are such a significant component of data analytics.
Summarize the article and align it with authors main point : Summarize the article and align it with the author's main point. How does this article contribute to contemporary thinking about business ethics?
How much total cost would be allocated to assembly cost : How much total cost would be allocated to the Assembly activity cost pool? Abagail Corp. uses activity-based costing system with three activity cost pools

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd