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Advanced Products Corporation has supplied the following data from its activity-based costing (ABC) system: Overhead Costs Wages and salaries overheads $300,000 Other overhead costs $100,000
Advanced Products Corporation has supplied the following data from its activity-based costing (ABC) system: Overhead Costs Wages and salaries overheads $300,000 Other overhead costs $100,000 Total overhead costs $400,000 Total Activity Activity Cost Pool Activity Measure for the year Supporting direct labor number of director 20,000 DLHs labor-hours (DLHs) Number of Order processing 400 orders customer orders Number of Customer support 200 customers customers This is an Other organization- Not applicable sustaining activity Distriubtion of Resource Consumption Across Activities Supporting direct Order Customer labor Processing Support Other Total Wages and salaries overheads F 40% 30% 20% 10% 100% F Other overhead costs 30% 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 the Shenzhen Enterprises Order is as follows: Data concerning Shenzhen Enterprises Order Units ordered 10 units Direct labor-hours 2 DLHs per unit Selling price $300 per unit Direct materials 180 per unit Direct labor costs $50 per unitQuestions (a) Show the allocation of overhead costs to the activity cost pools and compute the activity rates for the activity cost pools (Show your answer in the following space) (b) Show the overhead costs for the order from Shenzhen Enterprises including customer suppport costs (Show your answer in the following space) (c) Show the profit margin for the customer of Shenzhen Enterprises (Show your answer in the following space)
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