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Cancico Communications has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and Salaries 262,500 Other overhead costs 150,000 Total

Cancico Communications has supplied the following data for use in its activity-based costing system:

Overhead Costs

Wages and Salaries

262,500

Other overhead costs

150,000

Total overhead costs

412,500

Activity Cost Pool

Activity Measure

Total Activity

Direct labour support

Number of direct labour-hours

7,500 DLHs

Order processing

Number of orders

600 Orders

Customer Support

Number of Customers

120 Customers

Other

Costs 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

20%

40%

30%

10%

100%

Other Overhead Costs

15%

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:

Selling price $220 per unit

Units ordered 115 units

Direct materials - $195 per unit

Direct labour-hours 0.6 DLH per unit

Direct labour rate - $22 per DLH

*Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.

* Compute the activity rates for the activity cost pools

* Prepare a report showing the overhead costs for the order from HurnTel, including customer support costs.

*Prepare a report showing the customer margin for HurnTel.

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