Hi,
Below I have attached an assignment. Please give full explanations of answers. Thank You!
Chapter 7 "On Bored" is a company that manufactures specialty desks for computer users that play a lot of computer games. The CEO of this company has decided to move to an Activity Based Costing system. The data from the new ABC system is listed below. Additionally, there are data from one of On Bored's customers, Procrastinet - a software developer, as well. Overhead Costs Lost Wages and Salaries $350,000.00 Other Overhead Costs $150,000.00 Total Overhead Costs $500,000.00 Activity Cost Pool Total Activity for Activity Measure the Year Volume Related Number of Direct Labour Hours 30,000 Order Related Number of Customer Orders 500 Customer Support Number of Customers 400 costs not allocated to products or Other customers N/A Distribution of Resource Consumption Across Activities Volume Order- Customer Related Related Support Other Total Wages and Salaries 30.00% 20.00% 40.00% 10.00% 100.00% Other Overhead Costs 50.00% 10.00% 20.00% 20.00% 100.00% During the year, On Bored completed an order for one of its customers, Procrastinet. This customer did not order any other products during the year. Data concerning the order was as follows: Data concerning Procrastinet's Order Units Ordered 16 Units Direct Labour-Hours DLHs per unit Selling Price $450.00 per desk Direct Materials $125.00 per desk Direct Labour $12.00 per hourACCG70011 - Finance and Managerial Accounting Required: Using the above data, complete the following in regards to On Bored: 1. Prepare report showing first-stage allocations of overhead costs to the activity cost pools. - 9 marks 2. Compute the activity rates for the activity cost pools. - 3 marks 3. Prepare a report showing the overhead costs for the order from Procrastinet. - 2 marks 4. Prepare a report showing the product margin for the order and the customer margin for Procrastinet. - 6 marks Make sure to show ALL work! A majority of the marks are based on the work, not the final answer. To receive full credit for each question, you must show your work, and round your final answers to 2 decimal points correctly