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Exercise 5-15 (Static) Comprehensive Activity-Based Costing Exercise [LO5-2, LO5-3, LO5-4, LO5-5] Advanced Products Corporation has supplied the following data from its activity-based costing system: overhead

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Exercise 5-15 (Static) Comprehensive Activity-Based Costing Exercise [LO5-2, LO5-3, LO5-4, LO5-5] Advanced Products Corporation has supplied the following data from its activity-based costing system: overhead Costs Wagea and salarien Other overhead coata $300,000 100,000 $ 400,000 Total overhead costs Total Activity for the Year Activity Cost Pool Supporting direct labor Order processing Activity Measure Number of direct labor-hours 20,000 DLHS 400 orders Number of customer ordera Customer support Number of customers 200 customers This is an organization- sustaining activity Not applicable Other Distribution of Resource Consumption Across Aativities Order Supporting Direct Labor Customer Proceaning 30 Other Total Support Wagea and salaries Other overhead coata 10% 100 40 20 20 30 10 40 100 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 unita Direct labor-hours 2 DLHS per unit 300 per unit 180 per unit 50 per unit Selling price Direct materials Direct labor 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 Required 3 Required 1 Required 2 Required 4 Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools Direct Labor Order Customer Processing Support Support Other Totals Wages and salaries 0 Other overhead costs $ 0 0 $ 0$ $ 0 Total cost Required 1 Required 2 Required 1 Required 2 Required 3 Required 4 Compute the activity rates for the activity cost pools. (Round the "Direct labor support" to 2 decimal places.) Activity Cost Pool Supporting direct labor Activity Rate per DLH per order Order processing per Customer support customer Required 1 Required 3 Required 2 Required 1 Required 3 Required 4 Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs Activity Cost Pool ABC Cost Supporting direct labor Order processing Customer support Total 0 Required 2 Required 4 Required 3 Required 1 Required 2 Required 4 Calculate the customer margin for Shenzhen Enterprises. Shenzhen Enterprises Customer Margin-ABC Analysis Costs Customer margin

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