Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses 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 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a  Determine the shipping and handling activity cost to be allocated to each unit of product. Glasses $fill in the blank 1 Fine China $fill in the blank 2 Everyday dinnerware $fill in the blank 3 b  Determine the total shipping and receiving costs to be allocated to the fine china if 4,600 boxes are shipped. $fill in the blank 4

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 16E
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Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses 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 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds.

a  Determine the shipping and handling activity cost to be allocated to each unit of product.

Glasses $fill in the blank 1
Fine China $fill in the blank 2
Everyday dinnerware $fill in the blank 3

b  Determine the total shipping and receiving costs to be allocated to the fine china if 4,600 boxes are shipped.
$fill in the blank 4 

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