Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $ 262,500 Other overhead costs 150,000 Total overhead costs $ 412,500 Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labour-hours 7,500 DLHs Order processing Number of orders 600 orders Customer support Number of customers 120 customers Other These costs are not allocated to products or customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Support Order Processing Customer Support Other Total Wages and salaries 20 % 40 % 30 % 10 % 100 % Other overhead costs 15 % 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 $ 220 per unit Units ordered 115 units Direct materials $ 195 per unit Direct labour-hours 0.6 DLH per unit Direct labour rate $ 22 per DLH Required:

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

	Direct labour support	Order Processing	Customer support	Other	Total
Wages and salaries
Other overhead costs
Total cost

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

Activity cost pools	Activity rate
Direct labour support		Per DLH
Order processing		Per order
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.)

Activity cost pool	activity rate	activity	ABC cost
direct labour support	per DLH	..DLHs
Order processing	per order	order
Customer support	per customer	customer
Total

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		..