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Unique Finds 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. Unique 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. The final cost pool is used for general operations of the department and the cost driver is the number of orders. Information about the activities is summarized below: Cost Pool Estimated Total Costs $ 67,200 Cost Driver Estimated Annual Activity Number of boxes shipped Packaging and shipping Final inspection 200,000 Number of individual items inspected Number of orders General operations 85,000 boxes 100,000 items 10,000 orders During June, 2,100 boxes were packed and shipped. How much is the packaging and shipping cost for each box shipped? A) $0.24 B) $7.62 C) $4.20 D) $32.00 The chief engineer at Wilson Electronics has proposed the production of a digipad to be sold at a 30 percent markup on full cost. Management estimates that the fixed costs per year will be $150,000 and the variable cost of the digipad will be $28 per unit. If Wilson sells 30,000 digipads, what is the full cost of each unit? A) $42.90 B) $33.00 C) $36.40 D) $9.90

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