Requird:

1- First stage allocations of overhead

2- Compute the activity rates of the activity cost pools

3- Customer margin

Company A uses an activity-based costing system with the following six activity cost pools: Activity Cost Pool Annual Activity Maintenance 10,000 Machine hours Materials Handling 30,000 Material moves Setups 15,000 Setups Inspection 25,000 Quality inspections Order processing 25,000 Orders Customer Support 500 Customers The company traces the costs of direct materials and direct labor to jobs (i.e. orders). Overhead costs (both manufacturing and non-manufacturing) are allocated to jobs using the activity-based costing system. These overhead costs are listed below: Indirect factory wages $250,000 Other manufacturing overhead $500,000 Selling and administrative expense $700,000 Total $1,450,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Maintenance Materials Handling Setups Inspection Order processing customer support Indirect factory wages 25% 25% 10% 20% 10% 10% Other manufacturing overhead 30% 10% 40% 20% 0% Sellign and administrative expense 0% 0% 0% 0% 40% 60% 0%