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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 costs Total overhead costs 300,000 100,000 400,000 Total Activity for the Year Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure 20,000 DLRs Number of direct labor-hours Number of customer orders Number of customers This is an organization- 400 orders 200 customers Not applicable sustaining activity Distribution of Resource Consumpt ion Across Activities Custoner Supporting Order Other 108 408 Tota 100% 1008 Direct abor Processing hages and salaries Other overhead costs 401 308 30% 10% 208 20% ucts 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 DLHs 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. 4. Calculate the customer margin for Shenzhen Enterprises. Complete this questlon by entering your answers in the tabs below. Required 1 Required 2 Required 3Required 4 Calculate the customer margin for Shenzhen Enterprises Shenzhen Enterprises Customer Margin-ABC Analysis Costs: Customer margin Required 3
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