all verbost of sloper 7-3, LO7-4, LO7-5 s activity-based costine EXERCISE 1 Comprehensive Activity Based Costing Exercise LO7-2, LO7-3. LO Advanced Products Corporation has supplied the following data from its act system Overhead Costs Wages and salarles .. Other overhead costs ... Total overhead costs ....... $300,000 100,000 $400,000 Hi- at a Total Activity for the Year Activity Measure Activity Cost Pool tion 20,000 DLHS Supporting direct labor .............. Order processing Customer support .................. Other Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Order Direct Labor Processing Customer Support Other Wages and salaries ...... Other overhead costs .... Total 40% 30% 30% 10% 20% 20% 10% 40% 100% 100% During the year, Advanced Products completed one order for a new customer. Shenzac Enterprises. This customer did not order any other products during the year. Data concernin 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 Activity-Based Costing: A Tool to Aid Decision Making bibit 7-6 as a guide, prepare a report showing the first stage allocations of overhead Required 1. Using Exhibi sts to the activity cost pools. bibit 7-7 as a guide, compute the activity rates for the activity cost pools. the total overhead costs for the order from Shenzhen Enterprises including customer 2. Using Exhibit 7-7 3. Calculate the total ou support costs. 4. Using Exhibit 7-12 as xhibit 7-12 as a guide, calculate the customer margin for Shenzhen Enterprises