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A B D E H EMD Corporation manufactures Products It is considering implementing an activity-based costing (ABC) system that allocates all of its indirect costs

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A B D E H EMD Corporation manufactures Products It is considering implementing an activity-based costing (ABC) system that allocates all of its indirect costs to four cost pools. The following additional information is available for the company as a whole and for Product S. Activity Cost Pool Order processing Machine setups Activity Measure Number of orders Number of setups Number of customers Total Cost $340,000 $180,000 $84,000 Total Activity 20,000 orders 600 setups Customer relation 700 customers The company just completed orders from a specific customer - PG Inc., and has the following information gathered 1 Orders processed for the customer PG, Inc. 2 20 orders for Product S Machine has been set up 4 times to manufacture these Ss. 13 Product S: direct cost information 14 Direct labor cost per unit = $s 15 Direct materials cost per unit - $2 16 Sell Price = $17 a dotal of 800 Ss being sold to PG, Inc 17 18 1 Compute the activity rates for each cost pool 19 20 21 22 23 24 25 26 27 28 29 30 2. Calculate the total indirect overhead cost being allocated to the customer - PG.Inc.? 32 33 34 35 36 37 3. Caleate the customer margin for the customer - PG, Inc. 30 4 4

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