orporation 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 Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Labor 40% 30% Total Activity for the Year 20,000 DLHS Distribution of Resource Consumption Across Activities Supporting Direct Order Processing 30% 10% 400 orders 200 customers Not applicable Data Concerning the Shenzhen Enterprises Order Units ordered 10 units Direct labor-hours Selling price 2 DLHS per unit $300 per unit $180 per unit Direct materials Direct labor $ 50 per unit Customer Support 20% 20% Other 100% 40% Total 100% 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: 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.
orporation 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 Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Labor 40% 30% Total Activity for the Year 20,000 DLHS Distribution of Resource Consumption Across Activities Supporting Direct Order Processing 30% 10% 400 orders 200 customers Not applicable Data Concerning the Shenzhen Enterprises Order Units ordered 10 units Direct labor-hours Selling price 2 DLHS per unit $300 per unit $180 per unit Direct materials Direct labor $ 50 per unit Customer Support 20% 20% Other 100% 40% Total 100% 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: 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
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answer in text form please (without image)
Transcribed Image Text:Advanced Products Corporation 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
Data Concerning the Shenzhen
Units ordered
Direct labor-hours
Selling price
Direct materials
Direct labor
Activity Measure
Number of direct labor-hours
Number of customer orders
Number of customers
This is an organization-
sustaining activity
Distribution of Resource Consumption Across Activities
Customer
Supporting Direct
Support
20%
20%
Labor
48%
30%
Enterprises Order
10 units
2 DLHS per unit
Total Activity for the
Year
20,000 DLHS
Order
Processing
30%
10%
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
400 orders
200 customers
Not applicable
Other
10%
48%
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.
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