Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries $ 352,000 Other overhead costs $ 191,000

Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries $ 352,000 Other overhead costs $ 191,000 Total overhead costs $ 543,000 Activity Cost Pool Activity Measure Total Activity for the year Supporting direct labor Number of direct labor-hours 6,500 DLHs Order processing Number of customer orders 590 orders Customer support Number of customers 85 customers Other This is an organization- sustaining activity Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Order Customer Labor Processing Support Other Total Wages and salaries 10% 25% 20% 45% 100% Other overhead costs 30% 15% 15% 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 100 units Direct labor-hours 1 DLHs per unit Selling price $255 per unit Direct materials $254 per unit Direct labor $21 per unit Requirement 1: Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Supporting Direct Order Customer Labor Processing Support Other Total Wages and salaries $? $? $? $? $? Other overhead costs $? $? $? $? $? Total Costs $? $? $? $? $? Requirement 2: Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pools Activity Rate Supporting direct labor $ ? per DLH Order processing $ ? per order Customer support $ ? per customer Requirement 3: Determine the overhead costs for the order from Shenzhen Enterprises including customer support costs. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Activity Cost Pool ABC Cost Supporting direct labor $? Order processing $? Customer support $? Total $? Requirement 4: Prepare a report showing the customer margin for Shenzhen Enterprises. (Round your answers to 2 decimal places.) Customer Margin-ABC Analysis Sales $? Costs: Sales: $? Direct Labor: $? Direct Materials: $? Customer support Overhead: $? Order Processing Overhead: $? $? Customer Margin: $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions