Luxury Awnings makes custom awnings for homes and businesses. The company uses an activity$-$based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools:

Overhead Costs:

Production overhead $$200,000$

Office expense $100,000$

Total $$300,000$

Distribution of resource consumption:

Activity Cost Pools

Making Awnings Job Support Other Total

Production overhead $55\%35\%10\%100\%$

Office expenses $8\%75\%17\%100\%$

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 Pool Annual Activity

Making awnings $5,000$ metres

Job support $200$ jobs

Other Not applicable

Required:

a$)$ Prepare the first$-$stage allocation of overhead costs to the activity cost pools by filling in the table below:

Making Awnings Job Support Other Total

Production overhead

Office expense

Total

b$)$ Compute the activity rates $($i$.$e$.,$ cost per unit of activity$)$ for the Making Awnings and Job Support activity cost pools by filling in the table below:

Making Awnings Job Support

Production overhead

Office expense

Total

c$)$ Prepare a report in good form of a job that involves making $80$ yards of awnings and has direct materials and direct labour cost of $$3,000.$ The sales revenue from this job is $$4,000.$

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