Question: On Bored has supplied the following data for use in its ABC system Overhead Costs Cost Wages and Salaries $262,500.00 Other Overhead Costs $150,000.00 Total

"On Bored" has supplied the following data for use in its ABC system

Overhead Costs

Cost

Wages and Salaries

$262,500.00

Other Overhead Costs

$150,000.00

Total Overhead Costs

$412,500.00

Activity Cost Pool

Activity Measure

Total Activity for the Year

Direct labour support

Number of Direct Labour Hours

7,500 DLH

Order Processing

Number of Orders

500 orders

Customer Support

Number of Customers

120 customers

Other

costs not allocated to products or customers

N/A

Distribution of Resource Consumption Across Activities

Direct Labour Support

Order Processing

Customer Support

Other

Total

Wages and Salaries

20.00%

40.00%

30.00%

10.00%

100.00%

Other Overhead Costs

15.00%

25.00%

25.00%

35.00%

100.00%

During the year, On Bored completed the order for special telephone equipment for one of its customers, Procrastinet. This customer did not order any other products during the year. Data concerning the order was as follows:

Data concerning Procrastinet's Order

Units Ordered

115

units

Direct Labour-Hours

$.0.6

DLHs per unit

Selling Price

$220.00

per unit

Direct Materials

$195.00

per unit

Direct Labour Rate

$22.00

per direct labour hour

Using the above data, complete the following in regards to On Bored report showing the overhead costs for the order from Procrastinet.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!