Required:

1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs.

4. Calculate the customer margin for Shenzhen Enterprises.

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 Direct LaborProcessing Order Customer Other 10% 40 Total 100 100% Support Wages and salaries Other overhead costs 40% 30 308 10s 20 20 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