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Unique Finds Sells Fine Collectible Statues and Has Implemented Activity-Based

question 114

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Unique Finds 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. Unique 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. The final cost pool is used for general operations of the department and the cost driver is the number of orders. Information about the activities is summarized below:
 Cost Pool  Estimated  Total Costs  Cost Driver  Estimated  Annual Activity  Packaging and shipping $67,200 Number of boxes shipped 16,000 boxes  Final inspection 200,000 Number of individual items inspected 100,000 items  General operations 85,000 Number of orders 10,000 orders \begin{array}{|l|c|c|c|}\hline\text { Cost Pool } & \begin{array}{c}\text { Estimated } \\\text { Total Costs }\end{array} & \text { Cost Driver } & \text { Estimated } \\&&&\text { Annual Activity }\\\hline \text { Packaging and shipping } & \$ 67,200 & \text { Number of boxes shipped } & 16,000 \text { boxes } \\\hline \text { Final inspection } & 200,000 & \text { Number of individual items inspected } & 100,000 \text { items } \\\hline \text { General operations } & 85,000 & \text { Number of orders } & 10,000 \text { orders } \\\hline\end{array}
During June, 2,100 boxes were packed and shipped. How much is the packaging and shipping cost for each box shipped?

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Definitions:

Foramen

A natural opening or passage, especially in a bone, through which nerves or blood vessels may pass.

Yellow Bone Marrow

A type of bone marrow primarily composed of fat cells, which serves as a storage reserve of fats and contributes to energy supply.

Medullary Cavity

The central cavity of bone shafts where red bone marrow and/or yellow bone marrow (fat) is stored; it is found within the diaphysis of long bones.

Adipose-Filled

Refers to tissues or spaces within the body that are filled with adipose tissue, a type of connective tissue that stores fat.

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