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QUESTION 1: Gynriostsehetl Inc is a popular Cushion Manufacturer that produces and sells exotic Cushions made of feathers from an exotic bird that lives in an exotic planet, and eats exotic plant life serious. The company, having heard that you are taking ACCT& 203 at TCC, has hired you as an executive consultant. After thorough consultations and analysis, you have developed the following activity cost pools for e manufacturing overhead and other indirect costs. TOTAL ACTIVITY ACTIVITY COST POOL ACTIVITY MEASURE TOTAL COST Supporting Direct Labor Number of Direct Labor Hours Batch Processing Number of Batches Order Processing Number of Orders Customer Service Number of Custo Other $296,000 $213,125 $84,000 8,000 DLHs 182,000400 batches 275 orders 220,000 200 customers NA mers This is an organization-sustaining activity During the year, the company completed four orders for one of its major customers, Awree Natcacnotus. Details of these orders are provided below: SUMMARY OF ORDERS TO AWREE NATCACNOTUS ORDER 1 Jan 400 ORDER 2 ORDER 3 Jul 600 ORDER 4 Month of Order Units ordered Batches ordered Direct Materials cost per unit Direct labor hours per unit Direct labor cost per hour Seling Price per unit 200 600 S20 0.25 hours S25.00 S50 $20 0.25 hours 25.00 S50 S20 0.25 hours $25.00 S50 $20 0.25 hours S25.00 S50 REQUIRED 1. Compute the customer margin derived from the customer (Awree Natcacnotus) above 2. EXPLAIN four disadvantages (limitations) of Activity Based Costing

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