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

Overhead CostsWages and salaries$272,500 Other overhead costs 154,000 Total overhead costs$426,500

Activity Cost PoolActivity MeasureTotal ActivityDirect labour supportNumber of direct labour-hours7,760DLHsOrder processingNumber of orders450ordersCustomer supportNumber of customers130customersOtherThese costs are not allocated to products or customersNA

Distribution of Resource Consumption across Activity Cost Pools Direct Labour SupportOrder ProcessingCustomer SupportOtherTotalWages and salaries 20% 35% 30% 15% 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$226per unitUnits ordered 135unitsDirect materials$199per unitDirect labour-hours 0.6DLH per unitDirect labour rate$26per 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.)