Compute the overhead cost attributable to the office

Reference no: EM13840082

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

Reference no: EM13840082

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