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Exercise 7-15 (Static) Comprehensive Activity-Based Costing Exercise (L07-2, L07-3, LO7-4, L07-5) Advanced Products Corporation has supplied the following data from its activity-based costing system: overhead

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Exercise 7-15 (Static) Comprehensive Activity-Based Costing Exercise (L07-2, L07-3, LO7-4, L07-5) 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,eee 100, eee $ 4ee, eee Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Total Activity for the Year 20, 882 DLHS 488 orders 2ee customers Not applicable Distribution of Resource consumption Across Activities Supporting Direct Labor Order Processing Wages and salaries 48% 30% other overhead costs 30% 10% Customer Support 20% 20% Other 10% 40% Total 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 DLHS per unit Selling price $ 300 per unit Direct materials $ 18 per unit Direct labor $ 58 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Direct Labor Order Customer Support Processing Support Other Totals Wages and salaries Other overhead costs Total cost S 0 S 0 S 0 S 0 S 0 S 0 S 0 Complete this question by entering your answers in the tabs below. 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 Activity Rate Supporting direct labor per DLH Order processing per order Customer support per customer Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 S Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the customer margin for Shenzhen Enterprises. Shenzhen Enterprises Customer Margin-ABC Analysis Costs: 0 1 Customer margin S 0 0

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