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Cancico Communications has supplied the following data for use in its ABC system: 18 Overhead Costs Wages and salaries $290,000 Other overhead costs 161,000 Total

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Cancico Communications has supplied the following data for use in its ABC system: 18 Overhead Costs Wages and salaries $290,000 Other overhead costs 161,000 Total overhead costs $ 451,000 Total Activity 11,920 DLHs Activity Cost Pool Activity Measure Direct labour Number of direct labour- support hours Order processing Number of orders Customer support Number of customers Other These costs are not allocated to products or customers 500 orders 120 customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Order Customer Support Processing Support Other Total 15% 40% 35% 10% 100% Wages and salaries Other overhead 10% 25% 25% 40% 100% costs During the year, Cancico Communications completed an order for special telephone 18 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 Units ordered Direct materials Direct labour- hours Direct labour rate $220 per unit 170 units $ 199 per unit DLH per 0.6 unit $ 22 per DLH Required: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Direct Labour Support Order Processing Customer Support Other Totals Wages and salaries Other overhead costs Total cost $ 0 $ 0 $ 0 $ 0 $ 0 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pools Activity Rate Direct labour support per DLH per order Order processing Customer support 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 Activity Rate Activity ABC Cost per DLH DLHs $ 0 Direct labour support Order processing Customer support per order orders $ 0.00 per customer customer 0.00 2 ] Total 0.00 Activity Cost Pool Activity Rate Activity ABC Cost Direct labour support per DLH DLHs $ 0 Order processing per order orders $ 0.00 Customer support per customer customer $ 0.00 Total $ 0.00 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 0.00 Customer margin $ 0.00

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