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Duke Inc has supplied the following data from its activity-based costing (ABC) system: Overhead Costs Wages and salaries overheads Other overhead costs Total overhead
Duke Inc has supplied the following data from its activity-based costing (ABC) system: Overhead Costs Wages and salaries overheads Other overhead costs Total overhead costs $450,000 Activity Cost Pool Supporting direct labor Order processing Customer support $150,000 $600,000 Activity Measure number of director Total Activity for the year 20,000 DLHs labor-hours (DLHs) Number of customer orders 400 orders Number of customers 200 customers Other This is an organization- sustaining activity Not applicable Distriubtion of Resource Consumption Across Activities Supporting direct Customer Order Processing labor Support Other Total Wages and salaries overheads Other overhead costs 40% 30% 20% 10% 100% 30% 20% 20% 30% 100% During the year, DUKE completed ONE order for a new customer, HKU. This customer did not order any other products during the year. Data concerning the HKU Order is as follows: Data concerning the HKU Order Units ordered Direct labor-hours Selling price Direct materials Direct labor costs 10 units 2 DLHs per unit $500 per unit $180 per unit $50 per unit Questions (a) Show the allocation of overhead costs to the activity cost pools and compute the activity rates for the activity cost pools (Show your answer in the following space) (b) Show the overhead costs for the order from the customer HKU (Show your answer in the following space) |(c) Show the profit margin for the customer HKU (Show your answer in the following space)
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