Q7

Advanced Products Corporation has supplied the following data from its activity-based costing systenm Overhead Costs Wages and salaries Other overhead costs Total overhead costs 300,000 100,000 $400,000 Total Activity for the Year Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- 20,000 DLHs 400 orders 200 customers Not applicable sustaining activity Distribution of Resource Consumption Across Activities Supporting Order Customer Support 20% 20% Direct Labor Processing Wages and salaries Other overhead costs 40% 30% 30% 10% Other 10% 40% Total 100% 100% During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any other products during the year. Data concerning that order follow: Data Concerning the Shenzhen Enterprises Order Units ordered Direct labor-hours Selling price Direct materials Direct labor 10 units 2 DLHs per unit 300 per unit 180 per unit $ 50 per unit