Exercise 7-15 (Static) Comprehenslve Actlvlty-Based Costing Exercise [LO7-2, LO7-3, LO7-4, LO7-5] Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs $ 300,000 100,000 $ 400,000 Total overhead costs Total Activity for the Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Labor 40% 30% Order Customer Processing 30% 10% Support 20% 20% Other wages and salaries Other overhead costs 10% 40% Total 100% 10ex 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 Direct labor-hours Selling price Direct materials Direct labor 1e units 2 DLHS per unit $ 300 pen unit $ 180 per unit $ 50 per unit Requlred: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pogis
Exercise 7-15 (Static) Comprehenslve Actlvlty-Based Costing Exercise [LO7-2, LO7-3, LO7-4, LO7-5] Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs $ 300,000 100,000 $ 400,000 Total overhead costs Total Activity for the Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Direct Labor 40% 30% Order Customer Processing 30% 10% Support 20% 20% Other wages and salaries Other overhead costs 10% 40% Total 100% 10ex 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 Direct labor-hours Selling price Direct materials Direct labor 1e units 2 DLHS per unit $ 300 pen unit $ 180 per unit $ 50 per unit Requlred: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pogis
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Exercise 7-15 (Static) Comprehenslve Activity-Based Costing Exercise [LO7-2, LO7-3, LO7-4, LO7-5]
Advanced Products Corporation has supplied the following data from its activity-based costing system:
Overhead Costs
Wages and salaries
Other overhead costs
$ 300,000
100,000
$ 400,000
Total overhead costs
Total Activity for the
Activity Cost Pool
Supporting direct labor
Order processing
Customer support
Other
Activity Measure
Number of direct labor-hours
Number of customer orders
Number of customers
This is an organization-
sustaining activity
Year
20, 900 DLHS
400 orders
200 customers
Not applicable
Distribution of Resource Consumption Across Activities
Supporting Direct
Labor
40%
Customer
Support
Orden
Processing
Other
Total
Wages and salaries
Other overhead costs
30%
20%
10%
100%
100%
30%
10%
20%
40%
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
Direct labor-hours
Selling price
Direct materials
10 units
2 DLHS per unit
$ 300 per unit
$180 per unit
$ 50 per unit
Direct labor
Required:
1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs.
4. Calculate the customer margin for Shenzhen Enterprises.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Required 4
Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.
Direct Labor
Order
Customer
Support
Processing
Support
Other
Totals
Wages and salaries
Other overhead costs
Total cost
$
0.
2$
%24
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Transcribed Image Text:Exercise 7-15 (Static) Comprehenslve Activity-Based Costing Exercise [LO7-2, LO7-3, LO7-4, LO7-5]
Advanced Products Corporation has supplied the following data from its activity-based costing system:
Overhead Costs
Wages and salaries
Other overhead costs
$ 300,000
100,000
$ 400,000
Total overhead costs
Total Activity for the
Activity Cost Pool
Supporting direct labor
Order processing
Customer support
Other
Activity Measure
Number of direct labor-hours
Number of customer orders
Number of customers
This is an organization-
sustaining activity
Year
20, 900 DLHS
400 orders
200 customers
Not applicable
Distribution of Resource Consumption Across Activities
Supporting Direct
Labor
40%
Customer
Support
Orden
Processing
Other
Total
Wages and salaries
Other overhead costs
30%
20%
10%
100%
100%
30%
10%
20%
40%
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
Direct labor-hours
Selling price
Direct materials
10 units
2 DLHS per unit
$ 300 per unit
$180 per unit
$ 50 per unit
Direct labor
Required:
1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs.
4. Calculate the customer margin for Shenzhen Enterprises.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Required 4
Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.
Direct Labor
Order
Customer
Support
Processing
Support
Other
Totals
Wages and salaries
Other overhead costs
Total cost
$
0.
2$
%24
Reguired.2
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