Advanced Products Corporation produces a fire-resistant commercial filing cabinet that it sells to office furniture distributors. The company has a simple ABC system that it uses for internal decision-making purposes. The company has two overhead departments, whose costs are listed below: 

a. Prepare a report showing the first stage allocations of overhead costs to the activity cost pools. 

b. Compute the activity rates for the activity cost pools.

c. Prepare a report showing the overhead costs attributable to Shenzhen Enterprises, one of Advanced Product's customers. Last year, Shenzhen ordered filing cabinets four different times. Shenzhen ordered 80 filing cabinets in total during the year. 

d. The selling price of a filing cabinet is $595. The cost of direct materials is $180 per filing cabinet, and direct labor is $50 per filing cabinet. What is the customer margin of Shenzhen Enterprises?

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Overhead Costs Marufacturing overhead.. Seling and adninetratve overtead. keal overtead costs.. S500000 300000 5800000 The company's ABC system has the following activity cost pools and activity measures Activity Cost Pool Activity Measure Acsemting units. Processing orders. Customer support.. Other. Number of units Number of customer orders Number of automers These costs are not alocated to products or customers Costs assigned to the "Other' activity cost pool have no activity measure they consist of the costs of unused capacity and organization-sustaining costs neither of which are assigned to orders, customers. or the product. Advanced Products distributes the costs of manufacturing overhead and selling and administrative overhead to the activity cost pools based on interviews with employees as reported below: Assembling Processing Customer Orders Units Support Other Total Maufactuing overtead.. Seling and adrinitrate overtead. ktal activity. SO% 35% 1% 1000 units D0% 25% D0 customers 20% 250 orders Overhead Costs Marufacturing overhead.. Seling and adninetratve overtead. keal overtead costs.. S500000 300000 5800000 The company's ABC system has the following activity cost pools and activity measures Activity Cost Pool Activity Measure Acsemting units. Processing orders. Customer support.. Other. Number of units Number of customer orders Number of automers These costs are not alocated to products or customers Costs assigned to the "Other' activity cost pool have no activity measure they consist of the costs of unused capacity and organization-sustaining costs neither of which are assigned to orders, customers. or the product. Advanced Products distributes the costs of manufacturing overhead and selling and administrative overhead to the activity cost pools based on interviews with employees as reported below: Assembling Processing Customer Orders Units Support Other Total Maufactuing overtead.. Seling and adrinitrate overtead. ktal activity. SO% 35% 1% 1000 units D0% 25% D0 customers 20% 250 orders

Answer rating: 100% (QA)

1 a Assembling Units Processing Orders Customer Support Other Total Manufacturing ... View the full answer