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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 300,000 100,000 400,000 Total
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs 300,000 100,000 400,000 Total overhead costs Total Activity for Activity Cost Pool Supporting direct labor Order processing Customer support Activity Measure the Year Number of direct labor-hours 20,000 DLHs 400 orders 200 customers Number of customer orders Number of customers Other This is an organization- sustaining activity Not applicable Distribution of Resource Consumption Across Activities Order Supporting Direct Labor Customer Processing 30% Other Total Support Wages and salaries Other overhead costs 409 10% 209 100% 309 10% 20% 40% 100% 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 Units ordered Direct labor-hours 10 units DLHS per unit 300 per unit 180 per unit Selling price Direct materials Direct labor S 50 per unit 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 $ C C $ 0 C 0 C Total cost Required 2 Required 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 3 Compute the activity rates for the activity cost pools. (Round the "Direct labor support" to 2 decimal places.) Activity Cost Pool Activity Rate Supporting direct labor per DLH Order processing per order per customer Customer support Required 1 Required 3 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs. Activity Cost Pool ABC Cost Supporting direct labor Order processing Customer support Total $ C Required 2 Required 4 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Required 3 Calculate the customer margin for Shenzhen Enterprises. Shenzhen Enterprises Customer Margin-ABC Analysis Costs: C C Customer margin
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