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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 $ 00, 100, $
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs $ 00, 100, $ 400,000 Total overhead costs Total Activity for the Activity Cost Pool Supporting direct labor Order processing Customer support Activity Measure Number of direct labor-hours Year 20,00 DLHS 400 orders Number of customer orders Number of customers This is an organization- sustaining activity 200 customers Other Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Labor Order Processing Customer Other Total Support Wages and salaries Other overhead costs 40% 30% 20% 20% 10% 100% 30% 10% 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 10 units Direct labor-hours 2 DLHS per unit $300 per unit $ 180 per unit $ 50 per unit Selling price 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 4 Required 3 Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Direct Labor Order Customer Processing Support Support Other Totals Wages and salaries Other overhead costs Total cost Required 2 Required 1 Required 1 Required 2 Required 3 Required 4 Compute the activity rates for the activity cost pools. (Round the "Direct labor support" to 2 decimal places.) Activity Rate Activity Cost Pool Supporting direct labor per DLH Order processing per order Customer support per customer Required 3 Required 1 Required 2 Required 4 Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs. Cost Activity Cost Pool Supporting direct labor Order processing Customer support Total Calculate the customer margin for Shenzhen Enterprises. Shenzhen Enterprises Customer Margin-ABC Analysis Costs: Customer margin
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