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In: Accounting

A company shipped 6,000,000 pounds of goods to customers at a cost of $3,000,000. Total revenue...

A company shipped 6,000,000 pounds of goods to customers at a cost of $3,000,000. Total revenue is $40 million. If an individual customer orders 10,000 pounds, calculate the amount of shipping cost assigned to the customer using activity-based costing.

Solutions

Expert Solution

Shipping cost per pound 0.50 =3000000/6000000
Pounds ordered 10000
X Shipping cost per pound 0.50
Amount of shipping cost assigned to the customer 5000

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