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Exercise 6-32 (Static) Basic Product Costing (LO 6-1)
Barrett eSellers is an online retail store offering a variety of products. As a part of its business model, it offers free returns. The returns
are processed at the Returns Processing Facility (RPF) near one of the air freight hubs. The RPF checks the returns for documentation
(receipt and so on) and condition of the returned item and determines the disposition of the item (return to stock, resale as a "used"
item, or trash). The system at RPF is designed so that all returns that start the process on any given day are processed that day.
During May, the RPP processed 37,500 returns with a dollar sales value of $3,675,000. The costs incurred at the RPF during May were
as follows.
Facility labor
Facility overhead
$ 58,800
88,200
a.
Required:
a. Compute the cost per return for May at the RPF.
Note: Round your answer to 2 decimal places.
b. Compute the cost per dollar sales value for items returned for May at the RPF.
Note: Round your answer to 2 decimal places.
Cost per return for May
b. Cost per dollar sales value for items returned for May