Question
Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs aswer Wages and salaries Other overhead costs Total overhead costs
Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs aswer Wages and salaries Other overhead costs Total overhead costs Activity Cost Pool Direct labour support Order processing Customer support Other Wages and salaries Other overhead costs Selling price Units ordered Direct materials
$ $ Direct labour-hours Direct labour rate 262,500 150,000 412,500 Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Direct Labour Support S S $ Distribution of Resource Consumption across Activity Cost Pools Order Processing Customer Support 30% 25% 40% 25% 20% 15% During the year, Cancico Communications completed an order for special telephone equipment for a new customer, Hurn Tel. This customer did not order any other products during the year. Data concerning that order follow: 220 per unit 115 units Total Activity 7,500 DLHs 600 orders 120 customers 195 per unit 0.6 DLH per unit 22 per DLH Other 10% 35% 10 equired (a to d) Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Computer the activity rates for the activity cost pools. Prepare a report showing the overhead costs for the order from HumTel, including customer support costs (round your answers to 2 decimal places). Prepare a report showing the customer margin for HurnTel (round your answers to 2 decimal places).
Cancico Communications has supplied the following data for use in its ABC system: During the year, Cancico Communications completed an order for special telephone equipment for a new customer, HumTel. This customer did not order any other products during the year. Data concerning that order follow: equired ( a to d) Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Computer the activity rates for the activity cost pools. Prepare a report showing the overhead costs for the order from HumTel, including customer support costs (round your answers to 2 decimal places). Prepare a report showing the customer margin for HurnTel (round your answers to 2 decimal places)Step by Step Solution
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