Solved: Abc is estimating that there will be 400 shipments, Cost Accounting

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Abc is estimating that there will be 400 shipments

Activity based costing (ABC) has determined that the shipment setup costs should be accounted for at the batch-level of activities. ABC believes that the costs assigned to the shipment setup for the current period will be $440,000. ABC is estimating that there will be 400 shipments totalling 8,000 units during the current period. How much cost should be allocated to each shipment?

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Cost Accounting: Abc is estimating that there will be 400 shipments

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