Also here is question 2-4. (2) compute the activity rates for the activity costs pools. (3) prepare report showing the overhead cost for the order from hurntel including customers support cost. (4) prepare the report showing the customer margin for hurntel.

Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $307, 500 Other overhead costs 168, 000 Total overhead costs $475, 500 Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labour-hours 12, 585 DLHS Number of orders 600 orders Order processing Customer support Number of customers 180 customers Other These costs are not allocated to products or customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Order Customer Support Processing Support Other Total Wages and salaries 15% 40% 35% 10% 100% Other overhead costs 10% 25% 25% 40% 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: Selling price $ 215 per unit Units ordered 205 units Direct materials 192 per unit Direct labour-hours 0.6 DLH per unit Direct labour rate $ 29 per DLH Required: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Direct Labour Order Customer Support Processing Support Other Totals Wages and salaries Other overhead costs Total cost $ 0 S