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Exercise 7-16 Comprehensive Activity-Based Costing Exercise [LO2, LO3, LO4] Cancico Communications has supplied the following data for use in its ABC system: Wages and salaries

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Exercise 7-16 Comprehensive Activity-Based Costing Exercise [LO2, LO3, LO4] Cancico Communications has supplied the following data for use in its ABC system: Wages and salaries Other overhead costs $280,000 157,000 Total overhead costs $437,000 Activity Measure Total Activity Activity Cost Pool Direct labour support Order processing Customer support Other ,955 DLHs Number of direct labour-hours Number of orders Number of custoners These costs are not allocated 450 orders 200 customers NA to products or customers Distribution of Resource Consumption across Activity Cost Pool Direct Labour Support Processing Order Customer Support Total 1008 100 other Wages and salaries Other overhead costs 208 15% 358 258 308 258 158 35 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 Check my work Distribution of Resource Consumption across Activity Cost Pools Direct Labour Support Processing Support Order Customer Wages and salaries Other overhead costs 20% 15 35t 25t 308 25% other 158 358 Total 100 100 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 Units ordered Direct materials Direct labour-hours Direct labour rate $ 221 per unit 150 units s195 per unit 0.6 DLH per unit $ 29 per DLH Required 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools Direct Labour Order Customer Other Totals rocessin Wages and salaries Other overhead costs Total cost Pre 2of 6 Next Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Rate Activity Cost Pools Direct labour support Order processing Customer support per DLH per order per customer 3. Prepare a report showing the overhead costs for the order from HurnTel, including customer support costs. (Round your anywers to 2 decimal places.) Activity Activity Cost Pool Direct labour support Order processing Customer support Total Activity Rate ABC Cost per DLH per order per customer DLHs orders customer K Prev 2 of 6 Next> per ULH per order per customer ULHS Uirect labour support Order processing Customer support Total customer 20 points eBook 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

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