Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $280,000 Other overhead costs 157,000 Total overhead

Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $280,000 Other overhead costs 157,000 Total overhead costs $437,000 Activity Cost Pool Direct labour support Order processing Customer support Other Activity Measure Total Activity Number of direct labour-hours 7,955 DLHS Number of orders 450 orders Number of customers These costs are not allocated to products or customers 200 customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Order Support Processing Customer Support Other Total Wages and salaries 20% 35% 30% 15% 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. Hurn Tel. 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 $221 per unit 150 units $195 per unit 0.6 DLH per unit $ 29 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 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pools Direct labour support Activity Rate per DLH Order processing Customer support per order per customer 3. Prepare a report showing the overhead costs for the order from Hum Tel, including customer support costs. (Round your answers to 2 decimal places.) Activity Cost Pool Direct labour support Order processing Customer support Total Activity Rate Activity ABC Cost per DLH DLHS per order orders per customer customer 4. Prepare a report showing the customer margin for Hurn Tel. (Round your answers to 2 decimal places.) Sales Costs: Direct materials Direct labour Direct labour support overhead Order processing overhead Customer support overhead Customer margin

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Finance Doctors Tips And Tricks What You Dont Know Can Hurt You

Authors: Jhayne S. Santucci JD CPA CGMA

1st Edition

1735938815, 978-1735938813

More Books

Students also viewed these Accounting questions

Question

Ability to work comfortably in a team environment

Answered: 1 week ago

Question

Exposure to SQL desirable but not required

Answered: 1 week ago