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es Exercise 7-15 (Static) Comprehensive Activity-Based Costing Exercise [LO7-2, LO7-3, LO7-4, LO7-5] Advanced Products Corporation has supplied the following data from its activity-based costing system:
es Exercise 7-15 (Static) Comprehensive Activity-Based Costing Exercise [LO7-2, LO7-3, LO7-4, LO7-5] 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 Activity Cost Pool Supporting direct labor Order processing Customer support Other $ 300,000 100,000 $400,000 Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- Buataining activity Distribution of Resource Consumption Across Activities Total Activity for the Year 20,000 DL 400 orders 200 customers Not applicable Wages and salaries Other overhead costs Supporting Direct Labor Order Processing 30% Customer Support other Total 20% 10 100% 20% 20% 40 100% 40% 30 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 Direct labor-hours Selling price Direct materials Direct labor 10 units: 2 DLS per unit $300 per unit $ 180 per unit $50 per unit 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
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