Refer to the data for Advanced Products Corporation in Exercise 8—14.

Required:

1.         Using Exhibit 8A—1 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.

2.         Using Exhibit 8A—2 as a guide, compute the activity rates for the activity cost pools.

3.         Using Exhibit 8A—3 as a guide, prepare a report showing the overhead costs for the order from Shenzhen Enterprises including customer support costs.

4.         Using Exhibit 8—11 as a guide, prepare a report showing the customer margin for Shenzhen Enterprises.

5.         Using Exhibit 8A—5 as a guide, prepare an action analysis report showing the customer margin for Shenzhen Enterprises. Direct materials should be coded as a Green cost, direct labor and wages and salaries as Yellow costs, and other overhead costs as a Red cost.

6.         What action, if any, do you recommend as a result of the above analyses?