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Business, 14.03.2020 05:07 Nov25

Ranada Company manufactures and sells sportswear products. Ranada uses activity-based costing to determine the cost of the customer return processing and the shipping activity. The customer return processing activity has an activity rate of $45 per return, and the shipping activity has an activity rate of $10 per shipment. Ranada shipped 3,000 units of Product 1 in 1,200 shipments (some shipments are more than one unit). There were 150 returns. Determine the per-unit customer costs for combined shipping and returns of Product 1 a. $24.75 per unit b. $2.25 per unit c.$6.25 per unit d. $55 per unit

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