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Please include calculations Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $312,500 Other overhead costs
Please include calculations
Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $312,500 Other overhead costs 170,000 Total overhead costs $482,500 Activity Cost Pool Activity Measure Total Activity Direct labour Number of direct labour-5 675 DLHS support hours Order processing Number of orders 500 orders Customer support Number of customers 160 customers Other These costs are not allocated to products or customers NA Distribution of Resource Consumption across Activity Cost Pools Wages and salaries Other overhead costs Direct Labour Order Customer Support Processing Support 10% 45% 40% 15% 20% 20% Other 5% 45% 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: $ 224 per unit 215 units $196 per unit Selling price Units ordered Direct materials Direct labour- hours Direct labour rate 0.6 DLH per 0.0 unit $ 31 per DLH Required: 1. Prepare a report showing the first stage allocations of overhead costs to the activity cost pools. Direct Order Customer Other Labour Support Processing upport other Totals 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 Rate per DLH Activity Cost Pools Direct labour support Order processing Customer support 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.) Activity Rate ABC Cost Activity DLHS per DLH Activity Cost Pool Direct labour support Order processing Customer support Total per order orders per customer customer 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 marginStep by Step Solution
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