Question

Shanghai 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 $14 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. Round answers to the nearest whole dollar. a. Determine the shipping and handling activity for each product. Glasses $ China $ Everyday dinnerware $ b. Determine the total shipping and receiving costs for the china if 3,500 boxes are shipped. $

Answer 1

Answer:

(A)

shipping rate per product

glasses       28

china           56

dinnerware 84

(B)

3,500 china boxe 196,000 shipping rate

Explanation:

(A)

shipping $14 per pound

A box of glasses weighs 2 lbs x $14 = 28

the box of china weighs 4 lbs x $14 = 56

and a box of everyday dinnerware weighs 6 lbs x $14 = 84

(B)

3,500 china weighs x 56 = 196,000