Shipping, however. is different.
There are two activities associated with shipping: picking and 10 for loading, at an annual cost of $1,200,000
Other shipping costs total $1,100,000
Picking and loading are more concerned with the number of shipping items than with tonnage
That is, a shipping item may consist of two or three cartons instead of pallets
Accordingly, the shipping costs of the distribution center should be assigned using the number of items shipped
In 2006, for example, we handled 190,000 shipping items