Sundlow Technology uses a traditional costing system, but is considering implementing an activity based cost...
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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 $ Selling and administrative overhead $ Assembling Units Processing Orders Supporting Customers Other Manufacturing overhead Selling and administrative overhead Total activity units orders customers Sundlow Technology orders: Customers Orders Number of filing cabinets ordered in total units Selling price $ Direct materials $ Direct labor $ 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 ActivityBased Costing.
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 $
Selling and administrative overhead $
Assembling Units Processing Orders Supporting Customers Other
Manufacturing overhead
Selling and administrative overhead
Total activity units orders customers
Sundlow Technology orders:
Customers
Orders
Number of filing cabinets ordered in total units
Selling price $
Direct materials $
Direct labor $
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 ActivityBased Costing.
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