Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribedimage text in transcribedimage text in transcribed
image text in transcribedimage text in transcribedimage text in transcribed
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

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

Step: 3

blur-text-image

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

College Accounting A Practical Approach

Authors: Jeffrey Slater, Mike Deschamps

14th Edition

0134729315, 978-0134729312

More Books

Students also viewed these Accounting questions

Question

Why would a person fear success?

Answered: 1 week ago

Question

a = 7, c = 11; find b

Answered: 1 week ago

Question

3. It is the commitment you show that is the deciding factor.

Answered: 1 week ago