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thatit seisto office ingcabinet furniture distributors. The company has a simple ABC system that it uses for inte ?S Ferris Corporation makes a single product

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thatit seisto office ingcabinet furniture distributors. The company has a simple ABC system that it uses for inte ?S Ferris Corporation makes a single product fire-esistantco merca The company has two overhead departments whose costs are listed as follows: $600,000 Manufacturing overhead Selling and administrative overhead.. 200,000 800,000 Total overhead costs The company's ABC system has the following activity cost pools and activity measures: Activity Cost Pool Assembling units Processing orders Supporting Customers Activity Measure Number of units Number of orders Number of customers Ferris Corporation distributes the costs of manufacturing overhead and selling and administrative overhea to the activity cost pool s based on employee interviews, the results of which are reported below: Distribution of Resource Consumption Across Activity Cost Pools Assembling Processing Supporting Orders Customers Total Units 40% 30% 1,000 UnitsOrders Manufacturing Overhead Sell and Admin Overhead Total activity 40% 45% 20% 25% 100% 100% 100 Customers 1. Construct first-stage allocations of overhead costs to the activity cost pools Distribution of Resource Consumption Across Activity Cost Pools Assembling Processing Supporting Units Orders Customers Total Manufacturing Overhead Sell and Admin Overhead Total Cost 2. Compute activity rates for the activity cost pools Activity Cost Pools Total Cost Total Activity Activity Rate Assembling Units Processing Orders Supporting Customers 3. Construct a table showing the overhead costs. Actual activity given: assembling units-50; processing orders-8; supporting customers-2 Activity Cost Pools Assembling Units Processing Orders Supporting Customers Activity ABC Cost

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