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Advanced Products Corporation has supplied the following data from its activity-based costing system Overhead Costs Wages and salaries Other overhead costs $300,000 100,000 Total overhead
Advanced Products Corporation has supplied the following data from its activity-based costing system Overhead Costs Wages and salaries Other overhead costs $300,000 100,000 Total overhead costa 400,000 Total Activity for the Year 20,000 DLHs 400 orders 200 customers Not applicable Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hourn Number of customer orders Number of customers This is an organization sustaining activity Distribution of Resource Consunption Across Activities Supporting Direct Labor Order Processing Customer Support 20 20 Other Total Wages and salaries Other overhead costs 40 30% 10 40 100 100 30 10 During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any other products during the year. Data concerning that order follow Data Concerning the Shenzhen Enterprises Order Unite ordered 10 units 2 DLs per unit Direct labor-hours Selling prico $ 300 per unit $ 180 per unit S 50 per unit Direct materials Direct labor Required: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. 2. 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. Calculate the customer margin for Shenzhen Enterprises. Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Direct Labor Order Customer Support Processing Support Other Totals Wages and salaries Other overhead costs Total cost Roquired 1 Required 2 Prev 3 of 7 Next >
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