Question

question 13
last year, stevita inc. shipped 3,000,000 kilograms of goods to customers. shipping costs are based on kilograms of goods shipped. stevita incurred $2,400,000 in shipping costs this year. if an individual customer orders 20,000 kilograms and produces $400,000 of revenue (total revenue is $40 million), the amount of shipping cost assigned to the customer using activity - based costing would be:
(a) $24,000.
(b) $4,000.
(c) $16,000.
(d) $8,000.
question 14
raceway company manufactures engines. raceway produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: hydra international and parable company. both suppliers are reliable and rarely deliver late. hydra sells the component for $12 per unit, while parable sells the same component for $10. raceway

Explanation:

Step1: Calculate the shipping cost per kilogram

First, find the shipping - cost per kilogram last year. The total shipping cost was $2,400,000 and the total kilograms shipped were 3,000,000. The formula for cost per kilogram is $\text{Cost per kilogram}=\frac{\text{Total shipping cost}}{\text{Total kilograms shipped}}$.
So, $\text{Cost per kilogram}=\frac{2400000}{3000000}= 0.8$ dollars per kilogram.

Step2: Calculate the shipping cost for the customer

The customer orders 20,000 kilograms. To find the shipping cost assigned to the customer, use the formula $\text{Shipping cost for customer}=\text{Cost per kilogram}\times\text{Kilograms ordered by customer}$.
So, $\text{Shipping cost for customer}=0.8\times20000 = 16000$ dollars.

Answer:

C. $16,000