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Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries $ 300,000 Other overhead costs 100,000 Total

Advanced Products Corporation has supplied the following data from its activity-based costing system:

Overhead Costs
Wages and salaries $ 300,000
Other overhead costs 100,000
Total overhead costs $ 400,000
Activity Cost Pool Activity Measure Total Activity for the Year
Supporting direct labor Number of direct labor-hours 20,000 DLHs
Order processing Number of customer orders 400 orders
Customer suppor Number of customers 200 customers
Other This is an organization- sustaining activity Not applicable
Distribution of Resource Consumption Across Activities
Supporting Direct Labor Order Processing Customer Support Other Total
Wages and salaries 40 % 30 % 20 % 10 % 100 %
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 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

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Required 1 Required 2 Required 3 Required 4 Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Direct Labor Order Customer Support Processing Support Other Totals Wages and salaries $ 0 Other overhead costs $ 0 Total cost $ 0 $ 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 $ 0 Required 1 Required 2 Required 3 Required 4 Calculate the customer margin for Shenzhen Enterprises. Shenzhen Enterprises Customer Margin-ABC Analysis Costs: 0 Customer margin $ 0

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