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Activity-Based Costing: Selling and Administrative Expenses Comfort Step Company manufactures and sells shoes. Comfort Step u
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Answer #1

A.Calculation of total sales order processing and shipping activity cost for walking shoes

cost for order processing = number of orders * order cost

= 2700 * 81

= 218700

cost for shipping activity = number of shipments * shipping cost

= 200 * 20

= 4000

total sales order processing and shipping activity cost = cost for order processing + cost for shipping activity

= 218700 + 4000

= 222700

B. calculation of per unit sales order proceesing and shipping cost

Per unit sales order proceesing and shipping cost = total sales order processing and shipping activity cost / total number of units

= 222700 / 10000

= $22.27 Per unit

Thank You so much

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