Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cancico Communications has supplied the following data for use in its ABC system: Overhead Costa Wages and salaries Other overhead costs $265,000 151,000 Total overhead

image text in transcribed
image text in transcribed
image text in transcribed
Cancico Communications has supplied the following data for use in its ABC system: Overhead Costa Wages and salaries Other overhead costs $265,000 151,000 Total overhead costs $416,000 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 7,565 DLHS 450 orders 140 customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Support 200 158 Wages and salaries Other overhead costs Order Processing 358 250 Customer Support 308 258 Other 158 358 Total 1008 1000 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 Unita ordered Direct materials Direct labour-hours Direct labour rate $ 221 per unit 120 units $ 196 per unit 0.6 DLH per unit $ 23 per DLH Required: 1. Prepare a report showing the first stane allocations of overhead costs to the activity cost pools 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 Totale 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.) ABC Cost Activity Cost Pool Direct labour support Order processing Customer support Activity Rate per DUH per order per customer Activity DLHS orders customer 3. Prepare a report showing the overhead costs for the order from Hurrel, including customer support costs. (Round your answers to 2 decimal places.) ABC Cost Activity Cost Pool Direct labour support Order processing Customer support Total Activity Rato per DLH per order per customer Activity DLHS orders 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding And Conducting Information Systems Auditing

Authors: Arif Ahmed, Veena Hingarh

1st Edition

1118343743, 978-1118343746

More Books

Students also viewed these Accounting questions

Question

understand the key issues concerning international assignments

Answered: 1 week ago