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15 Taved Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs Total overhead
15 Taved Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs $280,000 157,000 $437,000 Activity Cost Pool Direct labour support Order processing Customer support Other Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to: products or customers Total Activity 7,955 DCHS 450 orders 200 customers NA Distribution of Resource Consumption across Activity Cost Pools Help Save & Exit Submit Wages and salaries Other overhead costs Direct Labour Order Customer Support 20% 15% Processing Support Other Total 35% 30% 15% 100% 25% 25% 35% 100% During the year, Cancico Communications completed an order for special telephone equipment for a new customer, HurnTel. This customer did not order any other products during the year. Data concerning that order follow: During the year, Cancico Communications completed an order for special telephone equipment for a new customer, HurriTel. This customer did not order any other products during the year. Data concerning that order follow Selling price Units ordered Direct materials: Direct labour-hours Direct labour rate $221 per unit 150 units $195 per unit 0.6 DLH per unit $ 29 per DLH Required: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Direct Labour Support Wages and salaries $ 56,000 $ Order Processing 98.000 Customer Support Other Totals Other overhead costs Total cost $ 56,000 $ 98,000 it cost pools (Round your answers to 2 decimal places.) 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pools Activity Rate 10.00 per DLH Direct labour support Order processing $ 305.00 per order Customer support $ 616.25 per customer 3. Prepare a report showing the overhead costs for the order from HurnTel, including customer support costs. (Round your answers to 2 decimal places.) Activity Cost Pool Direct labour support Order processing Customer support Activity Rate per DLH per order per customer Activity DLHS ABC Cost orders customer Total 4. Prepare a report showing the customer margin for HurnTel. (Round your answers to 2 decimal places.) Sales Costs: Direct materials Direct labour Direct labour support overhead Order processing overhead Customer support overhead Customer margin +
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