| Data |
|
|
|
|
| Manufacturing overhead |
$500,000 |
|
|
|
| Selling and administrative overhead |
$300,000 |
|
|
|
|
|
|
|
|
|
Assembling Units |
Processing Orders |
Supporting Customers |
Other |
| Manufacturing overhead |
50% |
35% |
5% |
10% |
| Selling and administrative overhead |
10% |
45% |
25% |
20% |
| Total activity |
1,000 |
250 |
100 |
|
|
units |
orders |
customers |
|
|
|
|
|
|
| PMA orders: |
|
|
|
|
| Customers |
1 |
customer |
|
|
| Orders |
4 |
orders |
|
|
| Number of alternators ordered in total |
80 |
units |
|
|
| Selling price |
$595 |
|
|
|
| Direct materials |
$180 |
|
|
|
| Direct labor |
$50 |
|
|
|
Perform the first stage allocations
Compute the activity rates
Compute the overhead cost attributable to the OfficeMart orders
Determine the customer margin for the OfficeMart orders under Activity-Based Costing
Determine the product margin for the OfficeMart orders under a traditional cost system