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Exercise 7-15 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
Exercise 7-15 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 $300,000 100,000 $400,000 Total overhead nctivity Cost Pool Total Activity for the Year Activity Measure Supporting direct Number of direct labor - 20,000 DLHs hours umber of customer orders Order processing 400 orders Customer support Number of customers other 200 custoners This is an Not applicable organization- sustaining activity Distribution of Resource Consumption Across Activities Supporting Direct Order Wages and salaries other overhead costs LaborProcessing Support Other 401 301 30% 10% 20 20 10% 40% 100 100 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 units Direct labor-hours 2 unit $300 per unit Selling price Direct materials 180 Direct labor per unit $50 per unit Required: L Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. 2. Compute the actvity rates for the activity cost pools. 3. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs . Calculate the customer margin for Shenzhen Enterprises
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