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Sundlow Technology uses a traditional costing system, but is considering implementing an activity...

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Accounting

Sundlow Technology uses a traditional costing system, but is considering implementing an activity based cost system. Below is some cost information and a recent order:
Manufacturing overhead $ 763,914
Selling and administrative overhead $ 85,675
Assembling Units Processing Orders Supporting Customers Other
Manufacturing overhead 44%39%9%9%
Selling and administrative overhead 10%44%33%13%
Total activity 3,460 units 712 orders 578 customers
Sundlow Technology orders:
Customers 4
Orders 4
Number of filing cabinets ordered in total 91 units
Selling price $ 627
Direct materials $ 276
Direct labor $ 206
Required:
Perform the first stage allocations.
Determine the predetermined Overhead rate for Sundlow Technology orders under a traditional cost system with units as the cost driver.
Determine the product margin for the Sundlow Technology orders under a traditional cost system.
Compute the activity rates.
Compute the overhead cost attributable to the Sundlow Technology orders.
Determine the customer margin for the Sundlow Technology orders under Activity-Based Costing.

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