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Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries s 800,000 Other overhead costs 700.000 Total
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries s 800,000 Other overhead costs 700.000 Total overhead costs $ 1.500.000 Activity Cost Pool Direct labor support 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 10.000 DLHS 500 orders 100 customers Not applicable Distribution of Resource Consumption Across Activities Order Customer Direct Labor Support Processing Support Other Total Wages and salaries 3096 20% 20% 30% 100% Other overhead costs 2096 30% 30% 20% 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 80 units Direct labor-hours 0.5 DLH per unit Selling price S 300 per units Direct materials S 274 per unit Direct labor S 21 per DLH Required: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Distribution of Resource Consumption Across Activity Cost Pools Direct Labor Order Customer Other Totals Support Processing Support s Wages and salaries Other overhead costs 0 Total overhead costs S S 0 s 0 s 0 s 0 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Direct Labor Support 10,000 DLHs Order Processing 500 orders Customer Support 100 customers Total activity Wages and salaries Other overhead costs Total cost S 0.00 s 0.00 S 0.00 3. Prepare a report showing the overhead costs for the order from Shenzhen Enterprises including customer support costs. (Round your intermediate calculations to 2 decimal places.) Direct Labor Support 40 DLHS Order Processing Total Customer Support 1 customer 1 order Activity Wages and salaries Other overhead costs S 0 0 Total cost S 0 S S 0 S 0 4. Prepare a report showing the customer margin for Shenzhen Enterprises Customer Margin-ABC Analysis Costs S 5. Prepare an action analysis report showing the customer margin for Shenzhen Enterprises. Direct materials should be coded as a Green cost, direct labor and wages and salaries as Yellow costs, and other overhead costs as a Red cost. Shenzhen Enterprises Green costs: Yellow costs Red costs
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