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Only answer question 2 Mercan Co. manufactures shipping containers for other businesses. Below is information concerning their costs: begin{tabular}{|c|c|c|c|c|c|c|} hline Distribution of Overhead Costs by

Only answer question 2

image text in transcribed Mercan Co. manufactures shipping containers for other businesses. Below is information concerning their costs: \begin{tabular}{|c|c|c|c|c|c|c|} \hline Distribution of Overhead Costs by Activity & \begin{tabular}{c} Supporting Direct \\ Labor \end{tabular} & \begin{tabular}{c} Order \\ Processing \\ \end{tabular} & \begin{tabular}{c} Customer \\ Support \end{tabular} & Delivery & Other & Total \\ \hline Wages and salaries & 25% & 30% & 20% & 20% & 5% & 100% \\ \hline Auto and truck expenses & 10% & 0% & 10% & 80% & 0% & 100% \\ \hline Other overhead costs & 30% & 20% & 25% & 10% & 15% & 100% \\ \hline \end{tabular} Required: 1. Prepare a first stage allocation of overhead costs to each of the five activities 6 points

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