Lucky Clothing creates and sells t-shirts that can be customized. The cost of sales order processing and shipping is calculated using activity-based costing at Lucky Clothing. The sales order processing activity has a $9 per sales order activity rate, and the shipping activity has a $18 per shipment activity rate. Lucky Clothing sold a total of 25,300 personalized t-shirts, including 4,000 orders and 1,300 shipping. The total activity cost is calculated through: Sales order activity costs = Number of orders * sales order activity rate = 4000*9 = $36,000Shipping Activity costs = Number of shipping * Shipping Activity rate= 1300*18 = $23400Total activity costs = Sales order activity costs + Shipping Activity costsWhile the per-unit sales order processing and shipping activity cost for customizable t-shirts is solved as follows:Per unit sales order processing costs = Sales order processing costs/ Number of t shirts = $36000 + $23400 = $59400
Per unit sales order processing costs = Sales order processing costs/ Number of t shirts
= 36000/25300 = $1.42 per t shirt
Per unit shipping cost = Shipping Activity costs/ Number of t shirts
= 23400/25300 = $0.92 per t shirt
In the problem set with its calculation, what are the factores that were nor considered for the time being and what could have been their impact on the outcome if they were considered? Pls help me with this one question :( ASAP thank you so muchand (B) the per-unit sales order processing and shipping activity cost for customizable t-shirts. Illustrate a computational solution. State your processes in a clear and logical fashion. (please help me :(
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