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Activity-based costing: seling and administrative expenses Play-Time Company manufactures and sells outdoor play equipment. Play-Time...

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Accounting

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Activity-based costing: seling and administrative expenses Play-Time Company manufactures and sells outdoor play equipment. Play-Time uses activity-based costing to determint the cost of the sales order processing and the customer return activity. The soles order processing activity has an activity rate of $18 per sales order, and the customer retum activity has an activity rate of s60 per retum. Play-Time sold 1,250 swing sets, which consisted of 1,000 orders and 75 returns. a. Determine the total sales order processing and customer return activity cost for swing sets. x b. Determine the per-unit sales order processing and customer return activity cost for swing sets. X per unit Fredoded F Crediny Wiak Calculate: (a) Number of activities x Activity rate per activity = Cost of ectivity associated with product. Sum both activities to obtain the total. (b) Total cost from Req. (a) Numter of product units = per unit costs

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