BE $18-4$ Activity$-$Based Costing: Selling and Administrative Expenses

Obj. $5$

Play$-$Time Company manufactures and sells outdoor play equipment. Play$-$Time uses activity$-$based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has an activity rate of $$18$ per sales order, and the customer return activity has an activity rate of $$60$ per return. PlayTime sold $1,250$ swing sets, which consisted of $1,000$ orders and $75$ returns. Determine $($a$)$ the total and $($b$)$ the per$-$unit sales order processing and customer return activity cost for swing sets.

BE $18-5$ Activity$-$Based Costing for a Service Business

Obj. $6$

The Grand Hotel uses activity$-$based costing to determine the cost of servicing customers. There are three activity pools: guest check$-$in$,$ room cleaning, and meal service. The activity rates associated with each activity pool are $$9$ per guest check$-$in$,$ $$15$ per room cleaning, and $$5$ per served meal $($not including food$).$ Nikita Johnson visited the hotel for a three$-$night stay. Nikita had three meals in the hotel during her visit. Determine the total activity$-$based cost for Nikita's visit.