Question: super hard! G H A B D E 1 EMD Corporation manufactures Product S. 2 It is considering implementing an activity-based costing (ABC) system that
super hard!G H A B D E 1 EMD Corporation manufactures Product S. 2 It is considering implementing an activity-based costing (ABC) system that allocates all of its indirect costs to four cost pools. 3 The following additional information is available for the company as a whole and for Product S. Activity Cost Pool Activity Measure Total Cost Total Activity 5 Order processing Number of orders $340,000 20,000 orders Machine setups Number of setups $180,000 3 Customer relation Number of customers $84,000 700 customers 600 setup 1 2 3 4 5 6 7 B 9 D The company just completed orders from a specific customer - PG Inc., and has the following information gathered. Orders processed for the customer PG, Inc.: 20 orders for Product S, Machine has been set up 4 times to manufacture these Ss. Product S: direct cost information Direct labor cost per unit = $5 Direct materials cost per unit - $2 Sell Price = $17, a total of 800 Ss being sold to PG, Inc.. 1. Compute the activity rates for each cost pool. 2 5 2. Calculate the total indirect overhead cost being allocated to the customer - PG, Inc.? B 9 0 2 3 7 3. Calculate the customer margin for the customer - PG, Inc.? 9 0 1 4 5
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