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Chapter 6 Direct materials. Direct labor... Manufacturing overhead: Indirect labor Factory equipment depreciation... Factory administration...... Ease of Adjustment Codes Green Yellow Yellow Red Red Required:

image text in transcribed Chapter 6 Direct materials. Direct labor... Manufacturing overhead: Indirect labor Factory equipment depreciation... Factory administration...... Ease of Adjustment Codes Green Yellow Yellow Red Red Required: Selling and administrative overhead: Wages and salaries Depreciation Marketing expenses Redi Red Yellow Using Exhibit 6A-5 as a guide, prepare an action analysis report for Interstate Trucking similar to those prepared for products. EXERCISE 6A-4 Comprehensive Activity-Based Costing Exercise [LO6-2, LO6-3, L06-4, L06-6] Refer to the data for Advanced Products Corporation in Exercise 6-15. Required: 1. Using Exhibit 6A-1 as a guide, prepare a report showing the first-stage allocations of over- head costs to the activity cost pools. 2. Using Exhibit 6A-2 as a guide, compute the activity rates for the activity cost pools. 3. Using Exhibit 6A-3 as a guide, prepare a report showing the overhead costs for the order from Shenzhen Enterprises including customer support costs. 4. Using Exhibit 6-12 as a guide, prepare a report showing the customer margin for Shenzhen Enterprises. 5. Using Exhibit 6A-5 as a guide, prepare an action analysis report showing the customer mar- gin 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. 6. What action, if any, do you recommend as a result of the above analyses

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