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Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs $285,000 159,000 Total overhead
Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs $285,000 159,000 Total overhead costs $444,000 Activity Cost Pool Direct labour support Order processing Customer support Other Activity Measure Number of direct labour-hours Number of orders customers These costs are not allocated to products or customers Total Activity 8,085 DLHs 450 orders 120 customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Support 20% 15% Wages and salaries Other Overhead costs Order Processing 35% 25% Customer Support 30% 25% Other 15% 35% Total 100% 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 Units ordered Direct materials Direct labour-hours Direct labour rate $ 226 per unit 160 units $ 197 per unit 0.6 DLH per unit 31 $ per DLH 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 Rate per DLH Activity DLHs ABC Cost $ 0.00 Activity Cost Pool Direct labour support Order processing Customer support Total orders $ per order per customer customer $ 0.00 0.00 0.00 $ 4. Prepare a report showing the customer margin for HurnTel. (Round your answers to 2 decimal places.) Sales $36,160.00 31,520.00 2,976.00 Costs Direct materials Direct labour Direct labour support overhead Order processing overhead Customer support overhead Customer margin 34,496.00 $ 1,664.00
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