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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 Total overhead costs
Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs $300,000 165,000 $465,000 Activity Cost Pool Direct labour support Order processing Customer support Other Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Total Activity 12,300 DLHS 500 orders 180 customers NA Distribution of Resource Consumption across Activity Cost Pools Wages and salaries Other overhead costs Direct Labour Support Order Customer Processing Support Other Total 15% 40% 35% 10% 100% 10x 25% 25% 40% 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 $217 per unit 190 units $196 per unit 8.6 DLM per unit 5 26 per DLH Required: 3 Required 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools el 12 Wages and salaries Other overhead costs Total cost Direct Labour Support Order Processing Customer Support Other Total 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Fools Deect labour support Order processing Customer support Activity Rate per DLH per order per customer 3. Prepare a report showing the overhead costs for the order from HunTel, including customer support costs. (Round your answers to 2 decimal places.) Ch 3 3. Prepare a report showing the overhead costs for the order from HumTel, including customer support costs. (Round your answers to 2 decimal places.) Activity Cust Puel 12 poets Order processing Deect labour support Customer support Total Activity Rate per DLH Activity OLHS ABC Cest por order orders per customer customer 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 Customer margin Help Save & Ch
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