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Despite the length, this is one question. Please don't answer my question partially. I paid for this subscription and every question I post is costly.
Despite the length, this is one question. Please don't answer my question partially. I paid for this subscription and every question I post is costly. So please answer my questions. Also, I'm aware of the chegg policy. This is ONE question.
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 $ 300,000 100,000 $ 400,000 During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This 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 Activity Cost Activity Measure Total Activity for the Pool Year Supporting direct Number of direct labor labor-hours 20.000 DLHS Order processing Number of customer 400 orders orders Customer support Number of customers 200 customers This is an Other organization Not applicable sustaining activity 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. Distribution of Resource Consumption Across Activities Supporting Order Customer Direct Labor Processing Support Other Total Wages and 40 % 30 % 20 % salaries 10% 100% Other overhead 30 % 10 % 20 40% 100% costs 70Step by Step Solution
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