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Question No. 2 (5 Marks): PELE Corporation makes a single product. The company has a simple ABC system that it uses for internal decision making. The company has two overhead departments whose costs are listed on the following table: Manufacturing overhead $2,000,000 Selling and administrative overhead 1,000,000 Total overhead costs $3,000,000 The company's ABC system has the following activity cost pools and activity measures: Activity Cost Pool Activity Measure Assembling units Number of units Processing orders Number of orders Supporting customers Number of customers Other Not applicable Costs assigned to the "Other" activity cost pool have no activity measure they consist of the costs of unused capacity and organization-sustaining costs-neither of which are assigned to orders, customers, or the product. PELE Corporation distributes the costs of manufacturing overhead and selling and administrative overhead to the activity cost pools as reported below: Distribution of Resources Consumption Across Activity Cost Pools Assembling Processing Supporting Units Orders Customers Other Total Manufacturing overhead 10% 100% Selling and administrative overhead 30% 40% 20% 10% 100% Total activity 2000 500 200 Units Orders Customers Required: 1) Perform the first-stage allocation of overhead costs to the activity cost pools. 2) Compute activity rates for the activity cost pools. 3) SANTOS is one of PELE Corporation's customers. Last year, SANTOS ordered the product 5 different times. SANTOS ordered a total of 100 units during the year. Construct a table showing the total overhead costs attributable to SANTOS Answer 20% 30% 40%

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