Overhead Costs
Wages and salaries	$	348,000
Other overhead costs		208,000
Total overhead costs	$	556,000

Activity Cost Pool	Activity Measure	Total Activity
Direct labor support	Number of direct labor-hours	13,000	DLHs
Order processing	Number of orders	490	orders
Customer support	Number of customers	95	customers
Other	This is an organization-sustaining activity	Not applicable

	Distribution of Resource Consumption Across Activities
	Direct Labor Support		Order Processing		Customer Support		Other		Total
Wages and salaries	20	%	30	%	20	%	30	%	100	%
Other overhead costs	30	%	10	%	15	%	45	%	100	%

Data Concerning the Indus Telecom Order
Selling price	$	250	per unit
Units ordered		100	units
Direct materials	$	263	per unit
Direct labor-hours		0.8	DLH per unit
Direct labor rate	$	23	per DLH

	Direct Labor	Order	Customer
	Support	Processing	Support	Other	Totals
Wages and salaries
Other overhead costs
Total cost

Activity Cost Pool	Activity Rate
Direct labor support		per DLH
Order processing		per order
Customer support		per customer

Activity Cost Pool	ABC Cost
Direct labor support
Order processing
Customer support
Total

Indus Telecom
Customer MarginABC Analysis
Costs:
Customer margin