Zohaib Manufacturing uses a activity based costing system for its manufacturing of fire resilient lucrative cabinet which it markets to main distributors. The company has two overhead departments whose costs are listed below:

Manufacturing overhead $5,00,000

Selling and administrative overhead $300,000

Total overhead costs $8,00,000

The company's activity based costing system has the following activity cost pools and activity measures:

Activity Cost Pool Activity Measures

Assembling units Number of units

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 the costs of unused capacity and organization-sustaining costs - neither of which are assigned to products, orders or customers.

Zohaib Corporation distributes the costs of manufacturing overhead and of selling and administrative overhead to the activity cost pools based on employee interviews, the results of which are reported below:

Distribution of Resource Consumption Across Activity Cost Pools

Assembling Units Processing Orders Supporting Customers Other Total

Manufacturing overhead 50% 35% 5% 10% 100%

Selling and administrative overhead 10% 45% 25% 20% 100%

Total activity 1,000 units 250 orders 100 customers -- --

Required:

1. Perform the first stage allocation of overhead costs to the activity cost pools.

2. Compute activity rates for the activity cost pools.

3. Office Mart is one of the Ferris Corporation's customers. Last year Office Mart ordered filing cabinet four different times. Office Mart ordered a total of 80 cabinets during the year. Construct a table showing the overhead costs 

of these 80 units and four orders.