Question 2 (Total 10 points) Ferris Corporation makes a single product of a fire-resistant commercial ling cabinet that it sells to ofce furniture distributors. The company has a simple Activity-Based Costing (ABC) system that it uses for internal decision making. The company has two overhead departments whose costs are as follows: Manufacturing overhead. .. .. .. .. .. .. $500,000 Selling and administrative overhead ........... $300,000 Total overhead costs ........................ $800,000 The company's ABC system has the following activity cost pools and activity measures: Activity Cost Pool Activity Measure Assembling units...... .. .. .. .. .. .. .. .. Number ofunits Processing orders ................................. Number of orders Supporting customers ............................ Number of customers Other ................................................ Not applicable Costs assigned to the \"other\" activity cost pool have no activity measure: they consist of organization-sustaining costs and unused capacity costs. Ferris Corporation distributes the costs of manufacturing overhead and selling and administrative overhead to the activity cost pools based on employee interviews. The results of interviews are reported below: Distribution of Resource Consumption Across Activity Cost Pools Assembling Processing Supporting Other Units Orders Customers M Manufacturing overhead .............. 50% 35% 5% 1 0% 100% Selling and administrative overhead 10% 45% 25% 20% 100% Total activity ........................... 1,000 units 250 orders 100 customers Required: (a) Perform the rst-stage allocation of overhead costs to the activity cost pools. Also calculate the activity rate for each activity pool (6 points) (b) OfceMart is one of Ferris Corporation's customers. Last year OfceMart ordered ling cabinets four different times (i.e., four orders) with a total of 80 cabinets. What are the overhead costs attributable to OfceMart? Show the necessary calculation. (2 points) (c) The selling price of a ling cabinet is $595. The cost of direct materials is $180 per ling cabinet, and direct labor is $50 per ling cabinet. What is the customer margin of OfceMart? Use the information provided in (b) and show the necessary calculation (2 points)