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Lotus Co. has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $342,000 Rent expense $53,000 Other overhead costs
Lotus Co. has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $342,000 Rent expense $53,000 Other overhead costs $252,000 Total overhead costs $647,000 Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labour-hours (DLH) 8,000 DLHs Order processing Number of orders 1,300 orders Customer support Number of customers 900 customers Other N/A Distribution of Resource Consumption Across Activity Cost Pools Order Processing Direct Labour Support 40% Customer Support Other Total Wages and salaries 45% 15% 0% 100% Rent expense 0% 0% 0% 100% 100% Other overhead costs 20% 20% 25% 35% 100% During the year, Lotus Co. completed an order for a new customer, Triangle Co.. This customer did not order any other products during the year. Data concerning their order follows. Selling price $400 per unit Units ordered 215 units Direct materials $150 per unit Direct labour-hours 2 DLH per unit Direct labour rates $15 per DLH Make sure you carry through all digits and only round your final answers. Negative numbers should be entered with a negative sign, not brackets. 1. What is the total overhead cost related to order processing? (1 mark) Number 2. What is the total overhead cost that will be allocated to products? (2 marks) Number 3. What is the total overhead cost that will be allocated to customers? (2 marks) Number 4. What is the activity rate for direct labour support (rounded to two decimals)? (1 mark) Number 5. What is the activity rate for order processing (rounded to two decimals)? (1 mark) Number two decimals)? (1 mark) 6. What is the activity rate for customer support (rounded Number 7. What is the sales revenue from Triangle Co.? (1 mark) Number 8. What are the total direct costs traced to Triangle Co.? (2 marks) Number 9. What amount of overhead will be allocated to Triangle Co. (rounded to nearest dollar)? (2 marks) Number 10. What is Triangle Co.'s customer margin (rounded to nearest dollar)? (2 marks) Number
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