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Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $300,000 Other overhead costs Total overhead costs
Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $300,000 Other overhead costs Total overhead costs $465,000 i Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labour-hours 12,300 DLHs Order processing Number of orders 500 orders Customer support Number of customers 180 customers Other These costs are not allocated to products or customers NA Distribution of Resource Consumption across Activity Cost. Pools Direct Labour Order Customer Support Process ing Support Other Total Wages and salaries 15% 40% 35% 10% 100% Other overhead costs 10% 25% 25% 40% 100% During the year, Cancico Communications completed an order for special telephone equipment for a new customer, HurnTeI. This customer did not order any other products during the year. Data concerning that order follow: Selling price $217 per unit Units ordered 190 units Direct materials 5 196 per unit Direct labour-hours 0.6 DLH per unit Direct labour rate 5 26 per DLH i Required: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Wages and salaries Other overhead costs Totalcost $ 0 $ 0 $ 0 $ 0 $ 0 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Direct labour support per DLH per order Order processing Customer support per customer 3. Prepare a report showing the overhead costs for the order from HurnTel, including customer support costs. (Round your answers to 2 decimal places.) Direct labour support per DLH DLHs $ 0.00 Order processing per order orders $ 0.00 Customer support per customer customer $ 0.00 Total $ 0.00 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 0.00 Customer margin $ 0.00
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