2 (20 Marks) Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead costs Wages and Salaries $350,000 Other overhead costs $200,000 Total overhead costs $550,000 Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labour hours 10,000 DLHs Order processing Number of orders 500 orders Customer support Number of customers 100 customers Other These costs are not allocated to products or customers Not applicable Distribution of Resource Consumption Across Activity Cost Pools Direct Labour Support Order Processing Customer Support Other Total Wages and salaries 30% 35% 25% 10% 100%` Other overhead costs 25% 15% 20% 40% 100% During the year, Silicon Optics completed an order for a special optical switch for a new customer, Indus Telecom. This customer did not order any other products during the year. Data concerning that order follow: Data Concerning the Indus Telecom Order Selling Price $295 per unit Units ordered 100 units Direct materials $264 per unit Direct labour hours 0.5 DLH per unit Direct labour rate $25 per DLH Required 1: Prepare a report showing the first stage allocations of overhead costs to the activity cost pools. Required 2: Compute the activity rates for the activity cost pools. Required 3 : Prepare a report showing the overhead costs for the order from Indus Telecom, including customer support costs. Required 4: Prepare a report showing the customer margin for Indus Telecom