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3. Why do the costs per diner for the three different parties differ from each other and from overall average cost of $16 per diner?

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3. Why do the costs per diner for the three different parties differ from each other and from overall average cost of $16 per diner? Advanced Products Corporation has supplied the following data from its activity-based EXERCISE 5-15 Comprehensive Activity-Based Costing Exercise L05-2, L05-3, L05-4, L05-5 costing system: Overhead Costs Wages and salaries Other overhead costs. Total overhead costs. $300,000 100,000 $400,000 Total Activity for the Year Activity Cost Pool Supporting direct labor..... Order processing Customer support. Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization-sustaining activity 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Order Customer Labor Processing Support 40% 30% 20% 305 10% 20% Wages and salaries....... Other overhead costs..... Other Total 10% 40% 100% 100% Activity-Based Costing: A Tool to Aid Decision Making Enterprises. This customer did not order any other products during the year. Data concerning that order follow; Data concerning the Shenzhen Enterprises Order Units ordered 10 units Direct labor-hours 2 DLHs per unit Selling price $300 per unit Direct materials $180 per unit Direct labor. $50 per unit Required: 1. Using Exhibit 5-6 as a guide, prepare a report showing the first stage allocations of overhead costs to the activity cost pools. 2. Using Exhibit 5-7 as a guide, compute the activity rates for the activity cost pools. 3. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs. 4. Using Exhibit 5-12 as a guide, calculate the customer margin for Shenzhen Enterprises connes

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