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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 Total overhead costs $
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs $ 300,000 100,000 $ 400,000 Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Total Activity for the Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Order Direct Labor Processing Wages and salaries 40% 30% Other overhead costs 30% 10% Customer Support 20% 20% Other 10% 40% Total 100% 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 Selling price $ 300 per unit Direct materials $ 180 per unit Direct labor $ 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. Required 1 Required 2 Required 3 Required 4 Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Order Direct Labor Support Customer Support Processing Other Totals Wages and salaries Other overhead costs Total cost $ 0 $ 0 $ 0 $ 0 $ 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 per DLH Activity Cost Pool Supporting direct labor Order processing Customer support per order per customer Required 1 Required 2 Required 3 Required 4 Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs. ABC Cost Activity Cost Pool Supporting direct labor Order processing Customer support Total 6 Required 1 Required 2 Required 3 Required 4 Calculate the customer margin for Shenzhen Enterprises. Shenzhen Enterprises Customer Margin-ABC Analysis Costs: Customer margin
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