Cancico Communications has supplied the following data for use in its ABC system:

Overhead CostsWages and salaries$282,500Other overhead costs158,000Total overhead costs$440,500

Activity Cost PoolActivity MeasureTotal ActivityDirect labour supportNumber of direct labour-hours8,020DLHsOrder processingNumber of orders450ordersCustomer supportNumber of customers140customersOtherThese costs are not allocated to products or customersNA

Distribution of Resource Consumption across Activity Cost PoolsDirect Labour SupportOrder ProcessingCustomer SupportOtherTotalWages and salaries20%35%30%15%100%Other overhead costs15%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$224per unitUnits ordered155unitsDirect materials$196per unitDirect labour-hours0.6DLH per unitDirect labour rate$30per DLH

Required:

1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)

3. Prepare a report showing the overhead costs for the order from HurnTel, including customer support costs. (Round your answers to 2 decimal places.)

4. Prepare a report showing the customer margin for HurnTel. (Round your answers to 2 decimal places.)

Cancico Communications has supplied the following data for use in its ABC system:

Overhead CostsWages and salaries$282,500Other overhead costs158,000Total overhead costs$440,500

Activity Cost PoolActivity MeasureTotal ActivityDirect labour supportNumber of direct labour-hours8,020DLHsOrder processingNumber of orders450ordersCustomer supportNumber of customers140customersOtherThese costs are not allocated to products or customersNA

Distribution of Resource Consumption across Activity Cost PoolsDirect Labour SupportOrder ProcessingCustomer SupportOtherTotalWages and salaries20%35%30%15%100%Other overhead costs15%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$224per unitUnits ordered155unitsDirect materials$196per unitDirect labour-hours0.6DLH per unitDirect labour rate$30per DLH

Required:

1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)

3. Prepare a report showing the overhead costs for the order from HurnTel, including customer support costs. (Round your answers to 2 decimal places.)

4. Prepare a report showing the customer margin for HurnTel. (Round your answers to 2 decimal places.)