HH Co. uses corrugated cardboard to ship its product t
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HH Co. uses corrugated cardboard to ship its product to customers. Currently, the company's returns department incurs
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HH Co. uses corrugated cardboard to ship its product to customers. Currently, the company's returns department incurs annual overhead costs of $72,000 and forecasts 2,000 returns per year. Management believes it has a found a better way to package its products. As a result, the company expects to reduce the number of shipments that are returned due to damage by 5%. In addition, the initiative is expected to reduce the department's annual overhead by $12,000. Compute the returns department's standard overhead rate per return (a) Before the sustainability improvement (b) After the sustainability improvement. (Round to the nearest cent.)
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