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Assume Apple uses activity-based costing to allocate customer support costs to products. For a MacBook Pro model, assume Apple budgets annual customer support costs of
Assume Apple uses activity-based costing to allocate customer support costs to products. For a MacBook Pro model, assume Apple budgets annual customer support costs of $850,000. Also assume Apple budgets 10,000 customer support calls per year for that model. Assumed product cost data for the MacBook Pro model follow Product Cost Direct materials Direct labor Overhead Total product cost Required: Per unit $ 490 60 265 $ 815 1. Compute the activity rate for the customer support cost 2. Prepare a customer profitability report for an order from a local college for 500 MacBook Pros. Each unit sells for $1,199. Apple budgets 500 support calls for this order. Required 1 Required 2 Compute the activity rate for the customer support cost. Customer support cost activity rate per call bes Prepare a customer profitability report for an order from a local college for 500 MacBook Pros. Each unit sells for $1,199. Apple budgets 500 support calls for this order. Customer Profitability Report Cost of goods sold Customer income
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