A shipping company handles containers in three different sizes: 1. 27 ft^3 (3 × 3 × 3) 2. 125 ft^3 3. 512 ft^3. Let Xi (i = 1, 2, 3) denote the number of type i containers shipped during a given week. With μi = E(Xi) and σi2 = V(Xi), suppose that the mean values and standard deviations are as follows:μ1= 220 μ2=260 μ3=110 μ1=220 μ2=260 μ3=110σ1=11 σ2=12 σ3=6 σ1=11 σ2=12 σ3=6Required:Assuming that X1, X2, X3 are independent, calculate the expected value and variance of the total volume shipped.

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?