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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 $282,500 158,000 $440,500 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 8,020 DLHS 450 orders 140 customers Wages and salaries Other overhead costs Distribution of Resource Consumption across Activity Cost Pools Direct Labour Support 20% 15% Order Processing 35% Customer Support 30% Other Total 15% 100% 25% 25% 35% 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 $ 224 per unit 155 units $ 196 per unit 0.6 DLH per unit $ 30 per DLH
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