Question E7-15:

EXERCISE 7-15 Comprehensive Activity-Based Costing Exercise L07-2, L07-3, L07-4, L07-5 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 Total Activity Activity Cost Pool Activity Measure for the Year Supporting direct labor . . . . . . . . . . . Number of direct labor-hours 20,000 DLHs Order processing Number of customer orders 400 orders Customer support Number of customers 200 customers Other This is an organization- Not applicable sustaining activity Distribution of Resource Consumption Across Activities Supporting Order Customer Direct Labor Processing Support 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