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

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 $ 300,000 100,000 $400,000 Customer support other Activity Cost Pool Supporting direct labor Order processing Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Total Activity for the Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Labor Wages and salaries Other overhead costs Order Processing 30% 10% Customer Support 20% other 10% Total 100% 20% 40% 100% 40% 30% 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 Direct labor-hours Selling price Direct materials Direct labor Required: 10 units 2 DLHS per unit $300 per unit $100 per unit $50 per unit 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 Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Wages and salaries Other overhead costs Total cost Direct Labor Support Order Processing Customer Support Other Required 2 > Totals Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rates for the activity cost pools. (Round the "Supporting direct labor" to 2 decin places.) Activity Cost Pool Activity Rate Supporting direct labor Order processing Customer support per DLH per order per customer Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 M Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs. (Do not round your intermediate calculations.) Activity Cost Pool ABC Cost Supporting direct labor Order processing Customer support Total < Required 2 Required 4 > 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. (Do not round your intermediate calculations.) Shenzhen Enterprises Customer Margin-ABC Analysis Costs L3\ Customer margin < Required 3 Required 4 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 $ 300,000 100,000 $400,000 Customer support other Activity Cost Pool Supporting direct labor Order processing Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Total Activity for the Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Labor Wages and salaries Other overhead costs Order Processing 30% 10% Customer Support 20% other 10% Total 100% 20% 40% 100% 40% 30% 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 Direct labor-hours Selling price Direct materials Direct labor Required: 10 units 2 DLHS per unit $300 per unit $100 per unit $50 per unit 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 Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Wages and salaries Other overhead costs Total cost Direct Labor Support Order Processing Customer Support Other Required 2 > Totals Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the activity rates for the activity cost pools. (Round the "Supporting direct labor" to 2 decin places.) Activity Cost Pool Activity Rate Supporting direct labor Order processing Customer support per DLH per order per customer Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 M Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs. (Do not round your intermediate calculations.) Activity Cost Pool ABC Cost Supporting direct labor Order processing Customer support Total < Required 2 Required 4 > 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. (Do not round your intermediate calculations.) Shenzhen Enterprises Customer Margin-ABC Analysis Costs L3\ Customer margin < Required 3 Required 4