me not expedy this correct i just want to be sure you are working at calculating the Activity Rates: The Overhead Cost the Product Margin. Both in Total and one Unit these are the numbers you will use for ABC Sales 52.660,000 5540.000 Direct costs Direct materials 5905,500 $69.500 Direct labor... 5263,750 $87.500 Shipping $60,000 55.000 Computation of Activity Rates Activity Cost Pools (a) Total Cost (b) Total Activity (a) (b) Activity Rate Customer orders $320.000 1.000 orders Product design $252.000 400 designs Order size $380,000 20,000 MHS You will then multiply the actual activity given below by the Activity Rates you calculate above to get the overhead amounts for each product Actual Activity Standard 1. This product does not require any new design resources 2. Thirty thousand units were ordered during the year comprising 600 separate orders 3. Each standard unit requires 35 minutes of machine time for a total of 17.500 machine hours Custom 1. This is a custom product that requires new design resources 2. There were 400 orders for custom products. Orders for this product are placed separately from orders for standard products 3 There were 400 custom designs prepared. One custom design was prepared for each order 4. Because some orders were for more than one unit, a total of 1,250 custom products were produced during the year. A custom product requires an average of 2 machine hours for a total of 2.500 machine-hours me not expedy this correct i just want to be sure you are working at calculating the Activity Rates: The Overhead Cost the Product Margin. Both in Total and one Unit these are the numbers you will use for ABC Sales 52.660,000 5540.000 Direct costs Direct materials 5905,500 $69.500 Direct labor... 5263,750 $87.500 Shipping $60,000 55.000 Computation of Activity Rates Activity Cost Pools (a) Total Cost (b) Total Activity (a) (b) Activity Rate Customer orders $320.000 1.000 orders Product design $252.000 400 designs Order size $380,000 20,000 MHS You will then multiply the actual activity given below by the Activity Rates you calculate above to get the overhead amounts for each product Actual Activity Standard 1. This product does not require any new design resources 2. Thirty thousand units were ordered during the year comprising 600 separate orders 3. Each standard unit requires 35 minutes of machine time for a total of 17.500 machine hours Custom 1. This is a custom product that requires new design resources 2. There were 400 orders for custom products. Orders for this product are placed separately from orders for standard products 3 There were 400 custom designs prepared. One custom design was prepared for each order 4. Because some orders were for more than one unit, a total of 1,250 custom products were produced during the year. A custom product requires an average of 2 machine hours for a total of 2.500 machine-hours
