Expert Q&A Done Hello, PLEASE PLEASE, I need quick answers to the following two questions based on the information bellow. Answer should not be excel based and please step by step Question 2.1 Using the company's traditional costing system, compute the total margin for the windows ordered by Avon Construction and Melun Builders during the year. Question 2.2 Using the ABC system, compute the total margin for the windows ordered by Avon Construction and Melun Builders during the year. Question Durant Windows a small family owned company that it wooden windows for local builders for years the company has relied on a simple conting wstem that applies manufacturing overhead to joitrictly on the basis of direct labor house for determining the condits of its products. The director waptrate is 18 per hour However, the companied became interested the casting ABCIA ARC tawiu together in collaboration with an external comutant and within a few months prototype system had been developed. The they cant sool, there there and prepare follow Activity Cost Pool Activity Measure Total Activity for the Year Moking windows Director hours 10.000 DUH Processing orders Number der 1.000 Customer relation Number of customer 200 customers Other NA NA The Other categoryadesigned to any of the activities in the cinemas well as de pocity The processing deactivity in order taking from custom and job scheduline. The total vertad cash maturing and routing for the year 100.000 and includes the following costs Manufacturing overhead costs 240.000 250 000 Indirect factory was Production equipment depreciation Other factory costs Subtotal 110.000 600,000 Selling and administrative expenses Administrative tres 240.000 Office opene 60.000 Marketing expenses 280.000 Subtotal 50.000 Total overhead cost Tots 1.100.000 Based on interviews with lovers, the distribution of resource comumption acrom the activities tot been estimated as follows: Processing Customer Othe Windows Orders Relations Indirect actory 23 50% 10 Production equipment direction Box ON 203 Other actory 40% ON ON GON Administratie 25 35 AN Om 20% 30% SON Marketing expenses IN 25 ON ON For example, the consultant estimated that the formen in the factorend 25% of their time in the production process. Sering sets and preparing the goods to delivery to the customer. The maining 15% is talent on mince departmental inks that he me to do with any particular order and partially reflect the fact that the plant has been operating below cracy during the one months Management of the company hi particularly interested in meaning the profitability of two customer. Avon Construction and Melur Builders as part of a strategic customer portfolio review. Details of these two come orders for the low Avon Construction Melund Number of orders during the 2 3 250 1.500 Total director hours Total sales 69.995 654995 Total recta 3.400 C17200 Expert Q&A Done Hello, PLEASE PLEASE, I need quick answers to the following two questions based on the information bellow. Answer should not be excel based and please step by step Question 2.1 Using the company's traditional costing system, compute the total margin for the windows ordered by Avon Construction and Melun Builders during the year. Question 2.2 Using the ABC system, compute the total margin for the windows ordered by Avon Construction and Melun Builders during the year. Question Durant Windows a small family owned company that it wooden windows for local builders for years the company has relied on a simple conting wstem that applies manufacturing overhead to joitrictly on the basis of direct labor house for determining the condits of its products. The director waptrate is 18 per hour However, the companied became interested the casting ABCIA ARC tawiu together in collaboration with an external comutant and within a few months prototype system had been developed. The they cant sool, there there and prepare follow Activity Cost Pool Activity Measure Total Activity for the Year Moking windows Director hours 10.000 DUH Processing orders Number der 1.000 Customer relation Number of customer 200 customers Other NA NA The Other categoryadesigned to any of the activities in the cinemas well as de pocity The processing deactivity in order taking from custom and job scheduline. The total vertad cash maturing and routing for the year 100.000 and includes the following costs Manufacturing overhead costs 240.000 250 000 Indirect factory was Production equipment depreciation Other factory costs Subtotal 110.000 600,000 Selling and administrative expenses Administrative tres 240.000 Office opene 60.000 Marketing expenses 280.000 Subtotal 50.000 Total overhead cost Tots 1.100.000 Based on interviews with lovers, the distribution of resource comumption acrom the activities tot been estimated as follows: Processing Customer Othe Windows Orders Relations Indirect actory 23 50% 10 Production equipment direction Box ON 203 Other actory 40% ON ON GON Administratie 25 35 AN Om 20% 30% SON Marketing expenses IN 25 ON ON For example, the consultant estimated that the formen in the factorend 25% of their time in the production process. Sering sets and preparing the goods to delivery to the customer. The maining 15% is talent on mince departmental inks that he me to do with any particular order and partially reflect the fact that the plant has been operating below cracy during the one months Management of the company hi particularly interested in meaning the profitability of two customer. Avon Construction and Melur Builders as part of a strategic customer portfolio review. Details of these two come orders for the low Avon Construction Melund Number of orders during the 2 3 250 1.500 Total director hours Total sales 69.995 654995 Total recta 3.400 C17200
