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5. TJ Co. uses the activity-based costing (also known as ABC) system. Data relating to the company's activity cost pools and activity rates for the
5. TJ Co. uses the activity-based costing (also known as ABC) system. Data relating to the company's activity cost pools and activity rates for the current year are given below (20 points): Activity Cost Pool a ctivity rate Activity b) ABC Costab Unit processing S12 per machine hour 3,000 36.00D Purchase orders $180 per order 50 9.000 Product design $900 per engineer 3 2,100 Customer services $7,000 per customer RX200, one of TJ's products, has the following info available: Number of units sold 2,500 Selling price per unit $80 Direct material cost per unit $30 Direct labor cost per unit $18 In addition, Product RX200 used 3,000 machine hours, generated 50 purchase orders, and required 3 engineers. (a) Compute the amount of overhead costs assigned to Product RX200 under the ABC system. (5 points) (b) Compute the amount of product margin for Product RX200 under the ABC system. (5 points) (c) One particular customer, Everett Co., purchased all 2.500 units of Product RX200 but nothing else. Compute the amount of overhead costs assigned to Everett Co. under the ABC system. (5 points) (d)Compute the amount of customer margin for Everett Co. under the ABC system. (5 points)
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