Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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, eee 100, eee $ 480,000 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 2e,eee DLHS 480 orders 2ee customers Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Labor Order 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 orde 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 $ 380 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. Complete this question by entering your answers in the tabs below
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started