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Turdy Corp. has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $228,000 Rent expense $20,000 Other overhead costs
Turdy Corp. has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $228,000 Rent expense $20,000 Other overhead costs $224,000 Total overhead costs $472,000 Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labour-hours (DLH) 10,000 DLHS Order processing Number of orders 1,250 orders Customer relations Number of customers 1,350 customers Other N/A Distribution of Resource Consumption Across Activity Cost Pools Other Total Direct Order Customer Labour Processing Relations Support 30% 10% 10% 50% 100% Wages and salaries Rent expense Other overhead costs 0% 0% 0% 100% 100% 25% 10% 10% 55% 100% During the year, Turdy Corp. completed an order for a new customer, Reenown Inc.. This customer did not order any other products during the year. Data concerning their order follows. Selling price $335 per unit Units ordered 185 units Direct materials $150 per unit Direct labour-hours 1.3 DLH per unit Direct labour rates $30 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 Reenown Inc.? (1 mark) Number 8. What are the total direct costs traced to Reenown Inc.? (2 marks) Number 9. What amount of overhead will be allocated to Reenown Inc. (rounded to nearest dollar)? (2 marks) Number 10. What is Reenown Inc.'s customer margin (rounded to nearest dollar)? (2 marks) Number
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