Advanced Products Corporation has supplied the following data from its activity-based costing system: During the year, Advanced

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Advanced Products Corporation has supplied the following data from its activity-based costing system:

Overhead Costs $300,000 Wages and salaries Other overhead costs 100,000 $400,000 Total overhead costs

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. Using Exhibit 8—5 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.

2. Using Exhibit 8—6 as a guide, compute the activity rates for the activity cost pools.

3. Prepare a report showing the overhead costs for the order from Shenzhen Enterprises including customer support costs.

4. Using Exhibit 8—11 as a guide, prepare a report showing the customer margin for Shenzhen Enterprises.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Managerial Accounting

ISBN: 978-0697789938

13th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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