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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 Total Activity for the Activity Cost Pool Activity Measure Year Supporting direct labor Number of direct labor-hour's 20,000 DLHS Order processing Number of customer orders 400 orders Customer support Number of customers 200 customers Other This is an organization Not applicable sustaining activity Distribution of Resource Consumption Across Activities Supporting Oirect Order Customer Labor Processing Support Other Total Wages and salaries 40% 30 2ex 10% 100% Other overhead costs 30x 10% 20% 4 100% 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 orden Units ordered 10 units Direct labor-hours 2 DLHS per unit Selling price $ 300 per unit Direct materials $ 189 per unit Direct labor 5 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
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