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Ritz Company sells fine collectible statues and has implemented activity-based costing.

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Ritz Company sells fine collectible statues and has implemented activity-based
costing. Costs in shipping department have been divided into 3 cost pools the first contains costs that are related to packaging and shipping and they have determined the number of boxes shipped is an appropriate cost driver for these costs. The second is made up of cost related to the final inspection of each item before it is shipped and the cost driver for this is the number of individual items that are inspected and shipped. Third is used for general operations and supervision of the department and the cost driver is the number of shipments. Further information is presented below:

Cost Pool- Packaging and shipping: Cost $164,600 Cost driver: number of boxes Actual activity: 24,700
Cost Pool- Final Inspection: Cost: $201,600 Cost driver: number of items Actual activity 98,300
Cost Pool- General operations and supervision Cost $80,200 Cost driver: number of of orders Actual activity 8,600

During the period, the sales office generated 698 orders for a total of 6,200 items. These orders were shipped in 1,374 boxes. What amount of shipping department costs should be allocated to these sales?

 
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