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Seling and administrative overhead ...... Total overhead costs......... JOUND 300000 $800.000 The company's ABC system has the following activity cost pools and activity measures: Activity
Seling and administrative overhead ...... Total overhead costs......... JOUND 300000 $800.000 The company's ABC system has the following activity cost pools and activity measures: Activity Cost Pool Assembling units. Processing orders Customer support Other Activity Measure Number of units Number of customer orders Number of customers These costs are not allocated to products or customers Costs assigned to the "Other activity cost pool have no activity measure they consist of the costs of unused capacity and organization-sustaining costs. neither of which are assigned to orders, customers, or the product. Advanced Products distributes the costs of manufacturing overhead and selling and administrative overhead to the activity cost pools based on interviews with employees as reported below: Total Manufacturing overhead .... Seling and administrative overhead. Assembling Processing Customer Units Orders Support 50% 35% 5% 10% 45% 25% 1000 units 250 orders 100 customers Other 10% 20% 100% 100% Total activity...... a. Prepare a report showing the first stage allocations of overhead costs to the activity cost pools. b. Compute the activity rates for the activity cost pools C. Prepare a report showing the overhead costs attributable to Shenzhen Enterprises, one of Advanced Product's customers. Last year, Shenzhen ordered filing cabinets four different times. Shenzhen ordered 80 filing cabinets in total during the year. I d. The selling price of a filing cabinet is $595. The cost of direct materials is $180 per filing cabinet, and direct labor is $50 per filing cabinet. What is the customer margin of Shenzhen Enterprises
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