Question: 7 2 3 4 5 . 1 A Boxes Limited produces collapsible storage boxes. The two most popular styles of storage boxes: Green and Blue.

7 2 3 4 5 . 1 A Boxes Limited produces collapsible storage boxes. The two most popular styles of storage boxes: Green and Blue. Boxes uses an ABC costing system and has the following overhead costs: Overhead Costs Manufacturing overhead Selling overhead Administrative overhead Total Overhead The company uses the following activity cost pools and drivers: $500,000 $450,000 $240,000 $1,190,000 Activity cost pool Driver Assembly Number of units Setups Number of setups Machining Machine hours Customer support Number of customers Other Not allocated to customers or products Total Activity Green Blue 5,000 1,000 4,000 100 20 80 10,000 400 4,000 200 6,000 200 Based on an extensive analysis and surveys conducted with all employees, Boxes distributes its overhead to the cost pools as follows. Customer emead Administrative overhead Total Overhead The company uses the following activity cost pools and drivers: $450,000 $240,000 $1,190,000 Activity cost pool Driver Total Activity Green Blue Assembly Number of units 5,000 1,000 4,000 Setups Number of setups 100 20 80 Machining Machine hours 10,000 4,000 6,000 Customer support Number of customers 400 200 200 Other Not allocated to customers or products 10,000 400 4,000 200 6,000 and Blue Bowes uses an ABC costing aster 14 Stomers Not allocated to customers or products 2001 m an extensive analysis and surveys conducted with all employees, Boxes distributes its overhead to the cost pools as follows: Customer Assembly Setups Machining Support Other Total 50% 15% 20% 10% 5% 100% 5% 5% 10% 75% 5% 100% 30% 20% 15% 20% 15% 100% Manufacturing overhead Selling overhead Administrative overhead rect costs per unit for Blue boxes last year are as follows: Jas Selling price Direct material Direct labour Blue $220.00 $40.00 $10.00 report showing first stage allocation of the overhead costs to the activity cost pools. (5 marks) Manufacturing overhead Selling overhead Administrative overhead Total overhead costs ce the activity rates for each cost pool. (4 marks) Activity Cost Pool Assembly Setups Machining Customer Support Other Customer Assembly Setups Machining Support Other Total

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