Question
Instructions for calculated numeric and multiple fill in the blanks question Please Note: a. Only whole numbers are to be entered as answers. Therefore, DO
Instructions for calculated numeric and multiple fill in the blanks question
Please Note:
a. Only whole numbers are to be entered as answers. Therefore, DO NOT put any signs in such as $, %, #, or a comma etc. in your answer. For example, if your answer is $1234 you should write 1234 as your answer and if your answer is 4%, write 4 as your answer.
b. Indicate a negative number by putting a minus sign in front. Therefore, if your answer is negative 1234 you need to post -1234 as your answer.
c. Round your answer to the nearest whole number, i.e. no decimal points. So if your answer is 1234.60 you should write 1235.
Herman, Inc., makes Jacuzzis for sale through specialty Bathroom fitting stores. The company has a standard Jacuzzi model, but also makes custom-designed Jacuzzis. Management has designed an activity-based costing system with the following activity cost pools and activity rates:
Activity Cost Pool | Activity Rate | ||
Supporting direct labor | $ | 18 | per direct labor-hour |
Order processing | $ | 180 | per order |
Custom design processing | $ | 250 | per custom design |
Customer service | $ | 410 | per customer |
Management would like an analysis of the profitability of a particular customer, Fancy water works Inc, which has ordered the following products over the last 12 months:
| Standard Jacuzzi | Custom Jacuzzi | ||
Number of Jacuzzis |
| 12 |
| 3 |
Number of orders |
| 1 |
| 3 |
Number of custom designs |
| 0 |
| 3 |
Direct labor-hours per jacuzzi |
| 27.50 |
| 34.00 |
Selling price per jacuzzi | $ | 1,600 | $ | 2,400 |
Direct materials cost per Jacuzzi | $ | 442 | $ | 582 |
|
The companys direct labor rate is $16 per hour.
Required:
Using the companys activity-based costing system, compute the following for the customer Fancy Water Works. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.)
1. Total Sales Revenue from Fancy Water Works
2. Total Direct Material Cost of the order
3. Total Direct Labor cost of the order
4. Total Allocated MOH of the order
5. Total Customer Margin
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