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for air conditioning Problem #2-13 marks: Phoenix Company makes custom covers units for homes and businesses. The company uses an activity-based costing system for annual

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for air conditioning Problem #2-13 marks: Phoenix Company makes custom covers units for homes and businesses. The company uses an activity-based costing system for annual its its overhead costs The company has provided the following data concerning overhead costs and its activity cost pools: Overhead Costs: Production Overhead Office Expense Total $100,000 $50,000 Distribution of Resource Consumption: Activity Cost Pools Making Job Covers Support Other Total 40% 12% Production overhead Office expense 42% 60% 18% 28% 100% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization- sustaining costs. The amount of activity for the year is as follows: Activity Cost Poo Making Covers Job Support Other 2,500 yards 200 jobs Not applicable Required: a) Prepare the first-stage allocation of overhead costs to the act in the table below (4 marks): ivity cost pools by filling Job Making Covsrs Support other Total Production Overhead Office Expense b) Compute the activity rates (i.e., cost per unit of activity) for the Making Covers and Job Support activity cost pools by filling in the table below (3 marks): Making Covers Job Support Production Overhead Office Expense Total c) Prepare a report in good form of a job that involves making s0 yards of covers and has direct materials and direct labour cost of $1,500. The sales revenue from this job is $2,500 (6 marks)

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