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shift b. Using the following information, set up a Customer Margin Report using Activity Based Costing to determine the profitability of the customer Customer A

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shift b. Using the following information, set up a Customer Margin Report using Activity Based Costing to determine the profitability of the customer Customer A Sales $580,000 Direct Material Cost $230,000 Direct Labor Cost $150,000 Selling Cost $80,000 Direct matenal selling cost Setup cost 230000 80,000 51,445 150ooo 79915 (contnbution margin Direct labur $-11360 Inspection Looking back to your work above, specify the value for each of the following: 1) Total overhead assigned to the Inspection cost pooli 2) Allocation rate for the clean-up cost pool 3) Total clean-up overhead assigned to the customer 4) Total inspection overhead assigned to the customers 79915 5) Total direct costs traced to the customer Chapter 6 Activity Based Costing Poldberg Co. uses activity-based costing for all of its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity based costing system: Overhead costs Wages & Salaries $806,000 Factory Supplies 488,000 Total $1.294.000 Distribution of resource consumption Activity Cost Pools Clean-Up Wages and solaries 22% Factory Supplies 48% Inspection 60% 20% Other 18% 32% Total 100% 100% The amount of activity for the year is as follows: Activity Cost Pool Activity Cleon-Up 1,000 Batches Inspection 400 Inspections How much OVERHEAD cost would be allocated to a "Customer A," who initiated 125 batches and 55 inspections in a year? (Please complete the template below.) ( Clean up Inspection Others total Wapest Salanes 177320 443600 145090 80.000 97600 156160/488000 THOM 411560 581 200 301240 1294000 Factory Supplies 234240 Clan up 4115600 1000 41156 Inspection / 581200 400 1453.00 rate Cleanup 411.56 Inspection | 1453 | Activity 125 S 55 overnad 51446 79915 Total= $131360

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