Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 716 Comprehensive Activity-Based Costing Exercise [L02, L03, L04] Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages
Exercise 716 Comprehensive Activity-Based Costing Exercise [L02, L03, L04] Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $267,500 Other overhead costs _l2L229_ Total overhead costs $419,500 I Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labourhours 7,630 DLHs Order processing Number of orders 450 orders Customer support Number of customers 110 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 Processing Support Other Total Wages 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 $224 per unit Units ordered 125 units Direct materials $197 per unit Direct labourhours 0.6 DLH per unit Direct labour rate $ 24 per DLH ' Required: 1. Prepare a report showing the firststage allocations of overhead costs to the activity cost pools. 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.) Direct labour support _ per DLH 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 __ __ Order processing Customer support Total customer 0.00 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 Customer margin $ 0.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started