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G B D E 1 Sarasota Products Corporation has supplied the following data for its activity-based costing: 2 3 Total overhead cost of operating the company for the year. 4 Wages and salaries $ 692,000 5 Other overhead costs 250,000 6 Total overhead costs $ 942,000 7 8 Activity 9 Activity Cost Pool: Measure Activity for the Year 10 Volume related Direct labour hours 25,000 Direct labour hours 11 Order related Customer orders 500 Customer orders 12 Customer support Customers 400 Customers 13 Other None Not applicable 14 15 16 Distribution of Resource Consumption 17 Across Activity Cost Pools 18 Volume Order Customer 19 Related Related Support Other Totals 20 Wages and salaries 40% 30% 20% 10% 100% 21 Other overhead costs 30% 10% 20% 40% 100% E F G H A 18 19 20 Wages and salaries 21 Other overhead costs B Volume Related 40% Order Related 30% 10% D Customer Support 20% 20% Other 10% 40% Totals 100% 100% 30% 22 AAA 23 During the year, Sarasota Products completed one order for a new customer, Moslin Enterprises. 24 This customer did not order any other products during the year. Data concerning that order follow 25 26 Units ordered 84 units 27 Direct labour hours 1.5 per unit 28 Seling price 450 per unit 29 Direct materials $ 190 per unit 30 Direct labour 55 per unit 31 32 33 Required: 34 35 (a) Complete the first stage allocation of overhead costs to the activity cost pools and calculate the activity rates 37 (6) Determine the overhead costs for the Moslin Enterprises order 38 39 ) Calculate the customer margin for Moslin Enterprises 36 un N a 1 N- K M (a) Activity Cost Pools Customer Volume related Order related support Wages and salaries Other overhead costs Total overhead costs 3 Other Totals 4 5 6 7 00 Activity Rates 9 10 11 12 13 14 15 Activity Cost Pool Volume related Order related Customer support Other (b) T15 M 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 x fx K L (b) Overhead Costs - Moslin Enterprises Order Activity Cost Pool Volume related Order related Customer support Other Total Customer Margin Moslin Enterprises Sales Direct Costs: K Total (0) Customer Margin Moslin Enterprises Sales Direct Costs: 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Overhead costs Total costs Customer margin 39

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