Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help Save & Exit Su Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Help Save & Exit Su Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs $292,500 162,000 Total overhead costs $454,500 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 12,015 DLHS 450 orders 150 customers Distribution of Resource Consumption across Activity Cost Pools Direct Labour Support Order Processing 40% 25% Customer Support 35% 25% Wages and salaries Other overhead costs 15% 10% Other 10% 40% 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: 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 $ 214 per unit 175 units $ 193 per unit 0.6 DLH per unit $ 23 per DLH 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 Totals 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 Direct labour support Order processing Customer support Activity Rate 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 answers to 2 decimal places.) ABC Cost Activity Cost Pool Direct labour support Order processing Customer support Total Activity Rate per DLH per order per customer Activity DLHS orders customer 4. Prepare a report showing the customer margin for Hurnlel. (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 Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs $292,500 162,000 Total overhead costs $454,500 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 12,015 DLHS 450 orders 150 customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Support 15% Order Processing 40% 25% Customer Support 35% 25% Other 10% 40% Total 100% 100% Wages and salaries Other overhead costs 10% 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 $ 214 per unit 175 units $ 193 per unit 0.6 DLH per unit $ 23 per DLH 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 Totals Wages and salaries Other overhead costs Total cost $ 0 $ 0 0 $ 10 $ 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Activity Cost Pools Direct labour support Order processing Customer support Activity Rate 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 answ 2 decimal places.) Activity DLHS Activity Cost Pool Direct labour support Order processing Customer support Total Activity Rate per DLH per order per customer orders customer ABC Cost $ 0.00 $ 0.00 $ 0.00 $ 0.00 4. Prepare a report showing the customer margin for HurnTel. (Round your answers to 2 decim. Sales Costs Direct materials Direct labour Direct labour support overhead Order processing overhead Customer support overhead Customer margin 0.00 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_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

Contemporary Auditing

Authors: Michael C. Knapp

11th edition

1305970810, 9781337514811, 1337514810, 978-1305970816

More Books

Students also viewed these Accounting questions

Question

What are the functions of top management?

Answered: 1 week ago

Question

Bring out the limitations of planning.

Answered: 1 week ago

Question

Why should a business be socially responsible?

Answered: 1 week ago

Question

Discuss the general principles of management given by Henri Fayol

Answered: 1 week ago

Question

Does your message present a conclusion?

Answered: 1 week ago