Exercise 7-15 (Static) Comprehensive Activity-Based Costing Exercise [LO7-2, LO7-3, LO7-4, LO7-5]

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

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

Activity Cost Pool	Activity Measure	Total Activity for the Year
Supporting direct labor	Number of direct labor-hours	20,000	DLHs
Order processing	Number of customer orders	400	orders
Customer supp0rt	Number of customers	200	customers
Other	This is an organization- sustaining activity	Not applicable

Distribution of Resource Consumption Across Activities
	Supporting Direct Labor	Order Processing	Customer Supp0rt	Other	Total
Wages and salaries	40%	30%	20%	10%	100%
Other overhead costs	30%	10%	20%	40%	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:

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. 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 supp0rt costs.

4. Calculate the customer margin for Shenzhen Enterprises.

Exercise 7-15 (Static) Comprehensive Activity-Based Costing Exercise (LO7-2, L07-3, L07-4. LO7-5) Advenced Products Carparation has supplies the following deas from ns setvity-ses cozing system verted costs and alaries the overhead costs Total overhead costs $ 380,00 280,00 $ 480, Activity Cost Pool Total Activity for the Activity and Year Supportive direct labor Mauber of direct laborous 20,608 DS Order processing Mber of customer orders 400 orders Customer support Number of customers 28 customers Other This is an organization Not applicable Sustaining activity Distribution of resource Consumption across Activities Support Direct Order Customer Lator Processing Suport Other Total gs and salaries 334 2. 12 100 other overhead costs 38 18% 2016 488 100 During the yes, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any other products during the year esta concerning that order follow Data Concerthe Shanghaise oder units ordered 18 units Direct Libor hours 2D per unit Selling price $ 380 por unit Direct trials $ 180 per unit Direct labor $ 50 per unit Required: 1. Prepare a report showing the first stage allocations of overhesd costs to the activity cost pools. 2 Compute the activity istes for the activity cost ods. 3. Ce culate the tota overhead costs for the order from Shenzhen Entererses including customer support con 4. Ca culate the customer margin for Shenzhen Enterprises. Complete this question by entering your answers in the tabs below. 1 1 ad 2 facued 3 qurid 4 Prepere a report showing the first stage allocations of overhead coats to the activity cost pook. Direof Labor Order Customer Support Processing Support Other Total Woons and are other overhead costs Total cost