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show all calculations please Overhead Costs Wages and salaries $362,000 Rent expense $61,000 Other overhead costs $261,000 Total overhead costs $684,000 Activity Cost Pool Activity
show all calculations please
Overhead Costs Wages and salaries $362,000 Rent expense $61,000 Other overhead costs $261,000 Total overhead costs $684,000 Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labour-hours (DLH) 9,250 DLHs Order processing Number of orders 1,300 orders Customer relations Number of customers 800 customers Other N/A Distribution of Resource Consumption Across Activity Cost Pools Other Total Direct Order Customer Labour Processing Relations Support 10% 40% 10% Wages and salaries 40% 100% 0% 0% 0% 100% 100% Rent expense Other overhead costs 25% 30% 10% 35% 100% During the year, Extrom Inc. completed an order for a new customer, Marestar Corp.. This customer did not order any other products during the year. Data concerning their order follows. Selling price $395 per unit Units ordered 100 units Direct materials $165 per unit Direct labour-hours 0.5 DLH per unit Direct labour rates $25 per DLH Make sure you carry through all digits and ONLY round your final response. 1. What is the total overhead cost related to order processing? (1 mark) Number 2. What is the total overhead cost that will be allocated to products? (2 marks) Number 3. What is the total overhead cost that will be allocated to customers? (2 marks) Number 4. What is the activity rate for direct labour support (rounded to two decimals)? (1 mark) Number 5. What is the activity rate for order processing (rounded to two decimals)? (1 mark) Number 6. What is the activity rate for customer relations (rounded to two decimals)? (1 mark) Number 7. What is the sales revenue from Marestar Corp.? (1 mark) Number 8. What are the total direct costs traced to Marestar Corp.? (2 marks) Number 9. What amount of overhead will be allocated to Marestar Corp. (rounded to nearest dollar)? (2 marks) Number 10. What is Marestar Corp.'s customer margin (rounded to nearest dollar)? (2 marks) NumberStep by Step Solution
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