Answered step by step
Verified Expert Solution
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 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- Not applicable sustaining activity 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: $21 per unit Requirement 1: Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. (Omit the "$" sign in your response.) Direct Order Customer Labor Processing Support Other Total Support Wages and salaries ? ? ? ? ? Other overhead costs ? ? ? ? ? Total cost ? ? ? ? ? Requirement 2: Compute the activity rates for the activity cost pools. 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. 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. Negative amount should be indicated by a minus sign. Customer Margin-ABC Analysis Sales
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started