In: Accounting
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.
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 |