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Ritz Company sells fine collectible statues and has implemented activity-based costing. Costs in the shipping...

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Accounting

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Ritz Company 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 and Rand 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 and shipped. The final cost pool is used for general operations and supervision of the department and the cost driver is the number of shipments. Information about the department is summarized below Annual Activity Cost Pool Total Costs Cost Driver Packaging and shipping $161,900 Number of boxes shipped 24.900 boxes Final inspection $197600 Number of individual items shipped General operations and supervision $80,100 Number of orders 9.100 orders During the period, the Far East sales office generated 670 orders for a total of These orders were shipped in 1.440 boxes. What amount of shipping department costs should be allocated to these sales? 6.030 items

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