Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs $ 300,000 100,000 $ 400,000 Total overhead costs Total Activity for Activity Cost Pool Supporting direct labor Order processing Customer support Activity Measure Number of direct labor-hours Number of customer orders Number of customers the Year 20,000 DLHS 400 orders 200 customers Other This is an organization- sustaining activity Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Labor Order Customer Processing 30% Support 20% 20% Other 108 40% Total Wages and salaries Other overhead costs 40% 100% 30% 10% 1008 During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not orde other products during the year. Data concerning that order follow: Data Concerning the Shenzhen Enterprises Order Units ordered Direct labor-hours Selling price Direct materials Direct labor 10 units 2 DLHS per unit $ 300 per unit $ 180 per unit 50 per unit Required: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs.
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs $ 300,000 100,000 $ 400,000 Total overhead costs Total Activity for Activity Cost Pool Supporting direct labor Order processing Customer support Activity Measure Number of direct labor-hours Number of customer orders Number of customers the Year 20,000 DLHS 400 orders 200 customers Other This is an organization- sustaining activity Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Labor Order Customer Processing 30% Support 20% 20% Other 108 40% Total Wages and salaries Other overhead costs 40% 100% 30% 10% 1008 During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not orde other products during the year. Data concerning that order follow: Data Concerning the Shenzhen Enterprises Order Units ordered Direct labor-hours Selling price Direct materials Direct labor 10 units 2 DLHS per unit $ 300 per unit $ 180 per unit 50 per unit Required: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Advanced Products Corporation has supplied the following data from its activity-based costing system:
Overhead Costs
Wages and salaries
$ 300,000
100,000
$ 400,000
Other overhead costs
Total overhead costs
Total Activity for
Activity Cost Pool
Supporting direct labor
Order processing
Customer support
Activity Measure
Number of direct labor-hours
the Year
20,000 DLHS
Number of customer orders
Number of customers
400 orders
200 customers
Other
This is an organization-
sustaining activity
Not applicable
Distribution of Resource Consumption Across Activities
Supporting
Direct Labor
Order
Customer
Processing
Support
20%
Other
Total
Wages and salaries
Other overhead costs
40%
30%
10%
100%
30%
10%
20%
40%
100%
During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any
other products during the year. Data concerning that order follow:
Data Concerning the Shenzhen Enterprises Order
Units ordered
10 units
2 DLHS per unit
$300 per unit
$ 180 per unit
$50 per unit
Direct labor-hours
Selling price
Direct materials
Direct labor
Required:
1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs.
Transcribed Image Text:Required:
1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs.
4. Calculate the customer margin for Shenzhen Enterprises.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Required 4
Calculate the customer margin for Shenzhen Enterprises.
Shenzhen Enterprises
Customer Margin-ABC Analysis
Costs:
0.
2$
0.
Customer margin
< Required 3
Required 4 >
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