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

question 4

Multiple Choice

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: $$\begin{array} { | l | c | c | c | } \hline { \text { Cost Pool } } & \begin{array} { c } \text { Estimated } \\\text { Total } \\\text { Costs }\end{array} & \text { Cost Driver } & \begin{array} { c } \text { Estimated } \\\text { Annual } \\\text { Activity }\end{array} \\\hline \begin{array} { l } \text { Packaging and } \\\text { shipping }\end{array} & \$ 67,200 & \text { Number of boxes shipped } & 16,000 \text { boxes } \\\hline \text { Final inspection } & 200,000 & \begin{array} { c } \text { Number of individual items } \\\text { inspected }\end{array} & 100,000 \text { items } \\\hline \text { General operations } & 85,000 & \text { Number of orders } & 10,000 \text { orders } \\\hline\end{array}$$ A new customer orders two items that can be shipped in a single box.What is the total shipping department cost that will be allocated to this order?

• A)$16.70
• B)$14.70
• C)$8.20
• D)None of these answer choices are correct.

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Definitions:

International Gothic

A style of 14th- and 15th-century painting begun by Simone Martini, who fused the French Gothic manner with Sienese art. This style appealed to the aristocracy because of its brilliant color, lavish costumes, intricate ornamentation, and themes involving splendid processions of knights and ladies.

Predella Scene

A lower panel or series of panels at the base of an altarpiece, often illustrating scenes related to the main subject.

Identifiable Light Source

A specific and recognizable origin of light in an artwork, contributing to the work's overall composition and mood.

Neutral Light

Neutral light refers to lighting that has a balanced color temperature, neither too warm nor too cool, providing a clear and consistent lighting condition that does not significantly alter the perception of colors.