Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries. Other overhead costs. Total overhead costs. Activity Cost Pool Supporting direct labor Order processing Customer support Other Wages and salaries Other overhead costs. $300,000 100,000 $ 400,000 Distribution of Resource Consumption Across Activities Supporting Direct Order Processing 30% 10% Data Concerning the Shenzhen Units ordered Direct labor-hours Activity Measure Number of direct labor-hours Number of customer orders Number of customers Selling price Direct materials. Direct labor This is an organization- sustaining activity Labor 40% 30% Enterprises Order 10 units. 2 DLHS per unit Total Activity for the Year 20,000 DLHS $300 per unit $180 per unit $50 per unit. 400 orders 200 customers Not applicable 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: Customer Support 20% 20% Other 10% 40% Total 100% 100% 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.
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries. Other overhead costs. Total overhead costs. Activity Cost Pool Supporting direct labor Order processing Customer support Other Wages and salaries Other overhead costs. $300,000 100,000 $ 400,000 Distribution of Resource Consumption Across Activities Supporting Direct Order Processing 30% 10% Data Concerning the Shenzhen Units ordered Direct labor-hours Activity Measure Number of direct labor-hours Number of customer orders Number of customers Selling price Direct materials. Direct labor This is an organization- sustaining activity Labor 40% 30% Enterprises Order 10 units. 2 DLHS per unit Total Activity for the Year 20,000 DLHS $300 per unit $180 per unit $50 per unit. 400 orders 200 customers Not applicable 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: Customer Support 20% 20% Other 10% 40% Total 100% 100% 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject: acounting
Transcribed Image Text:Advanced Products Corporation has supplied the following data from its activity-based costing system:
Overhead Costs
Wages and salaries
Other overhead costs
Total overhead costs
Activity Cost Pool
Supporting direct labor
Order processing
Customer support
Other
Wages and salaries
Other overhead costs
Distribution of Resource Consumption Across Activities
Supporting Direct
Data Concerning the Shenzhen
Units ordered
Direct labor-hours
Selling price
Direct materials
Direct labor
$ 300,000
100,000
$ 400,000
Activity Measure
Number of direct labor-hours
Number of customer orders
Number of customers
This is an organization-
sustaining activity
Sales
Costs:
Required 1 Required 2 Required 3
Direct materials
Direct labor
Order processing overhead
Labor
40%
30%
Enterprises Order
10 units
2 DLHS per unit
Customer margin
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:
$300 per unit
$180 per unit
$50 per unit
✓
Complete this question by entering your answers in the tabs below.
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.
✓ S 1,800✔
500✔
Required 4
800
Order
Processing
30%
10%
Total Activity for the
Year
Calculate the customer margin for Shenzhen Enterprises. (Do not round your intermediate calculations.)
Shenzhen Enterprises
Customer Margin-ABC Analysis
$ 3,000
$
20,000 DLHs
X Answer is not complete.
3,100
(100)
400 orders
200 customers
Not applicable
Customer
Support
20%
20%
< Required 3
Other
10%
40%
Total
100%
100%
Required 4 >
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