*Show work
Ritz Company sells fine collectible statues and has implementedactivity-based costing. Costs in the shipping department have beendivided into three cost pools. The first cost pool contains coststhat are related to packaging and shipping and Rand has determinedthat the number of boxes shipped is an appropriate cost driver forthese costs. The second cost pool is made up of costs related tothe final inspection of each item before it is shipped and the costdriver for this pool is the number of individual items that areinspected and shipped. The final cost pool is used for generaloperations and supervision of the department and the cost driver isthe number of shipments. Information about the department issummarized below:
CostPool TotalCosts CostDriver AnnualActivity Packaging and shipping $163,100 Number of boxes shipped 22,100 boxes Final inspection $202,600 Number of individual itemsshipped 99,400 items General operations andsupervision $84,600 Number of orders 8,500 orders
During the period, the Far East sales office generated 692orders for a total of 6,130 items. These orders were shipped in1,483 boxes. What amount of shipping department costs should beallocated to these sales?
*Show work
Ritz Company sells fine collectible statues and has implementedactivity-based costing. Costs in the shipping department have beendivided into three cost pools. The first cost pool contains coststhat are related to packaging and shipping and Rand has determinedthat the number of boxes shipped is an appropriate cost driver forthese costs. The second cost pool is made up of costs related tothe final inspection of each item before it is shipped and the costdriver for this pool is the number of individual items that areinspected and shipped. The final cost pool is used for generaloperations and supervision of the department and the cost driver isthe number of shipments. Information about the department issummarized below:
| CostPool | TotalCosts | CostDriver | AnnualActivity |
| Packaging and shipping | $163,100 | Number of boxes shipped | 22,100 boxes |
| Final inspection | $202,600 | Number of individual itemsshipped | 99,400 items |
| General operations andsupervision | $84,600 | Number of orders | 8,500 orders |
During the period, the Far East sales office generated 692orders for a total of 6,130 items. These orders were shipped in1,483 boxes. What amount of shipping department costs should beallocated to these sales?
