Phoenix Company makes custom covers for air conditioning units 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

$100,000

Office Expense

$ 50,000

Total

$150,000

Distribution of Resource Consumption:

The "Other" activity cost pool consists of the costs of idle capacity and

a) Prepare the first-stage allocation of overhead costs to the activity cost pools by filling

in the table below:

b) Compute the activity rates (i.e., cost per unit of activity) for the Making Covers and

Job Support activity cost pools by filling in the table below:

c) (Appendix 5A) Prepare an action analysis report in good form of a job that involves

making 50 yards of covers and has direct materials and direct labour cost of $1,500. The

sales revenue from this job is $2,500. For purposes of this action analysis report, direct

materials and direct labour should be classified as a Green cost, production overhead as a

Red cost, and office expense as a Yellow cost.