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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: 1. 2. 3. 000.00 Required: Using Exhibit 5-6 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Using Exhibit 5-7 as a guide, compute the activity rates for the activity cost pools. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs. Using Exhibit 5-12 as a guide, calculate the customer margin for Shenzhen Enterprises. 4. Data concerning the Shenzhen Enterprises Order Units ordered. 10 units Direct labor-hours. 2 DLHS per unit Selling price Direct materials Direct labor. $300 per unit $180 per unit $50 per unit 1338099

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: 1. 2. 3. 000.00 Required: Using Exhibit 5-6 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Using Exhibit 5-7 as a guide, compute the activity rates for the activity cost pools. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs. Using Exhibit 5-12 as a guide, calculate the customer margin for Shenzhen Enterprises. 4. Data concerning the Shenzhen Enterprises Order Units ordered. 10 units Direct labor-hours. 2 DLHS per unit Selling price Direct materials Direct labor. $300 per unit $180 per unit $50 per unit 1338099

Financial & Managerial Accounting
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter26: Cost Allocation And Activity-Based Costing
Section: Chapter Questions
Problem 26.8EX: Identifying activity bases in an activity-based cost system Select Foods Inc. uses activity-based...
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Activity-Based Costing: A Tool to Aid Decision Making 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: 2. 3. Data concerning the Shenzhen Enterprises Order 10 units 2 DLHS per unit 4. Units ordered. Direct labor-hours Selling price Direct materials Direct labor. Required: 1. Using Exhibit 5-6 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Using Exhibit 5-7 as a guide, compute the activity rates for the activity cost pools. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs. Using Exhibit 5-12 as a guide, calculate the customer margin for Shenzhen Enterprises. $300 per unit $180 per unit $50 per unit 1308099
Transcribed Image Text:Activity-Based Costing: A Tool to Aid Decision Making 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: 2. 3. Data concerning the Shenzhen Enterprises Order 10 units 2 DLHS per unit 4. Units ordered. Direct labor-hours Selling price Direct materials Direct labor. Required: 1. Using Exhibit 5-6 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Using Exhibit 5-7 as a guide, compute the activity rates for the activity cost pools. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs. Using Exhibit 5-12 as a guide, calculate the customer margin for Shenzhen Enterprises. $300 per unit $180 per unit $50 per unit 1308099
EXERCISE 5-15 Comprehensive Activity-Based Costing Exercise L05-2, L05-3, L05-4, L05-5 Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries. Other overhead costs. Total overhead costs.. Activity Cost Pool Supporting direct labor. ... Order processing Customer support. Other Wages and salaries. . . . . . . Other overhead costs..... vollot ynsqmos silt pode noitsmolni lenonibb neupon edull porib od T $300,000 on adol 100,000A #T Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization-sustaining activity Supporting Direct Labor 40% 30% Order Processing $400,000 Distribution of Resource Consumption Across Activities 3210 30% 10% Customer Support 20% 20% Total Activity for the Year 20,000 DLHs 400 orders 200 customers Not applicable Senasisch Other 10% 40% Total 100% 100%
Transcribed Image Text:EXERCISE 5-15 Comprehensive Activity-Based Costing Exercise L05-2, L05-3, L05-4, L05-5 Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries. Other overhead costs. Total overhead costs.. Activity Cost Pool Supporting direct labor. ... Order processing Customer support. Other Wages and salaries. . . . . . . Other overhead costs..... vollot ynsqmos silt pode noitsmolni lenonibb neupon edull porib od T $300,000 on adol 100,000A #T Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization-sustaining activity Supporting Direct Labor 40% 30% Order Processing $400,000 Distribution of Resource Consumption Across Activities 3210 30% 10% Customer Support 20% 20% Total Activity for the Year 20,000 DLHs 400 orders 200 customers Not applicable Senasisch Other 10% 40% Total 100% 100%
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