EXERCISE 7-14 Comprehensive Activity-Based Costing Exercise [L02, L03, L04, L05) Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead costs Wages and .......... $300,000 salaries Other overhead costs 100,000 Total overhead costs ...... $400,000 Activity Cost Pool Activity Measure Total Activity for the Year Supporting direct labor Order processing Customer support Other Number of direct labor-hours 20,000 DLHs Number of customer orders 400 orders Number of customers 200 customers This is an organization Not applicable sustaining activity Distribution of Resource Consumption Across Activities Supporting Direct Labor Order Processing Customer Support Other Total Wages and salaries Other overhead costs 40% 30% 10% 20% 20% 100% 100% 40 During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any other products duri g the year. Data Concerning Shenzhen Enterprises Order follow: Data concerning the Shenzhen Enterprises Order Units ordered ................ 10 units Direct labor-hours ............. 2 DLHs per unit Selling price ................. $300 per unit Direct materials............... $180 per unit Direct labor ...... ..... $50 per unit Required: 1. Using Exhibit 7-5 as a guide, prepare a report showing the first-allocations stage of overhead costs to the activity cost pools. 2. Using Exhibit 7-6 as a guide, compute the activity rates for the activity pools cost . Prepare a showing overhead costs for the from Shenzhen Enterprises include report the order ing customer support costs. 4. Using Exhibit 7-11 as guide, prepare a showing customer margin for Shenzhen a report the Enterprises