Activity based costing (ABC) has determined that the shipment setup costs should be accounted for at the batch-level of activities. ABC believes that the costs assigned to the shipment setup for the current period will be $440,000. ABC is estimating that there will be 400 shipments totalling 8,000 units during the current period. How much cost should be allocated to an order of 70 units that requires three shipments to deliver?
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