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Chrome File Edit View History Bookmarks People Window Help 28% Sun 10:40 PM QE . . New Tab M McGraw-Hill Connect M MHE Reader Course
Chrome File Edit View History Bookmarks People Window Help 28% Sun 10:40 PM QE . . New Tab M McGraw-Hill Connect M MHE Reader Course Modules: ACC2200 401 x C player-ui.mheducation.com/#/epub/sn_20d88#epubcfi(%2F6%2F244%5Bdata-uuid-ae7c8d1d21b243bd8eOb3c4cf1f25f83%5D!%2F4%2F2%5Bdata-uuid-02699564449... AA : EXERCISE 5-15 Comprehensive Activity-Based Costing Exercise LI LO5-2, LI LO5-3, 105-4, ' LO5-5 Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries $300,000 Other overhead costs 100,000 Total overhead costs $400,000 Activity Cost Pool Activity Measure Total Activity for the Year Supporting direct labor Number of direct labor-hours 20,000 DLHs Order processing Number of customer orders 400 orders Customer support Number of customers 200 customers Other This is an organization-sustaining activity Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Labor Order Processing Customer Support Other Total Wages and salaries 40% 30% 20% 10% 100% Other overhead costs 30% 10% 20% 40% 100%Chrome File Edit View History Bookmarks People Tab Window 27% Sun 10:41 PM Q . . New Tab M McGraw-Hill Connect M MHE Reader X Course Modules: ACC2200 40 X C player-ui.mheducation.com/#/epub/sn_20d88#epubcfi(%2F6%2F244%5Bdata-uuid-ae7c8d1d21b243bd8eOb3c4cf1f25f83%5D!%2F4%2F2%5Bdata-uuid-02699564449... O * Other overhead costs 30% 10% 20% 40% 100% During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This Page 265 customer did not order any 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 $300 per unit Direct materials $180 per unit Direct labor $50 per unit Required: 1. Using L Exhibit 5-6 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. 2. Using I Exhibit 5-7 as a guide, 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. Using Exhibit 5-12 as a guide, calculate the customer margin for Shenzhen Enterprises
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