Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has an activity rate of $72 per sales order, and the customer return activity has an activity rate of $10 per return. Jungle Junior sold 20,000 swing sets, which consisted of 5,000 orders and 500 returns. a. Determine the total sales order processing and customer return activity cost for swing sets. $fill in the blank 1 b. Determine the per-unit sales order processing and customer return activity cost for swing sets. If required, round your answer to the nearest cent. $fill in the blank 2per unit
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has an activity rate of $72 per sales order, and the customer return activity has an activity rate of $10 per return. Jungle Junior sold 20,000 swing sets, which consisted of 5,000 orders and 500 returns.
a. Determine the total sales order processing and customer return activity cost for swing sets.
$fill in the blank 1
b. Determine the per-unit sales order processing and customer return activity cost for swing sets. If required, round your answer to the nearest cent.
$fill in the blank 2per unit
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
