Activity-Based Costing: Selling and Administrative Expenses
Jungle Junior Company manufactures and sells outdoor playequipment. Jungle Junior uses activity-based costing to determinethe cost of the sales order processing and the customer returnactivity. The sales order processing activity has an activity rateof $75 per sales order, and the customer return activity has anactivity rate of $15 per return. Jungle Junior sold 10,000 swingsets, which consisted of 2,800 orders and 300 returns.
a. Determine the total sales order processingand customer return activity cost for swing sets.
$
b. Determine the per-unit sales orderprocessing and customer return activity cost for swing sets. Ifrequired, round your answer to the nearest cent.
$per unit
