Question: Amazon.com, Inc. has identified two cost pools for its fulfillment center overhead costs: Packing costs of $500,000 and Shipping costs of $1,000,000. The cost drivers

  1. Amazon.com, Inc. has identified two cost pools for its fulfillment center overhead costs: Packing costs of $500,000 and Shipping costs of $1,000,000. The cost drivers are packing orders and shipping orders, respectively. If the company processed 50,000 packing orders and 100,000 shipping orders during the month, allocate the overhead costs to each activity.

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