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Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs 349,000 Wages and salaries Other overhead costs 193,000 542,000
Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs 349,000 Wages and salaries Other overhead costs 193,000 542,000 Total overhead costs Activity Measure Activity Cost Pool Total Activity 13,000 DLHs Direct labor support Number of direct labor-hours 450 orders Order processing Number of orders Customer support Number of customers 100 customers Other This is an organization-sustaining activity Not applicable Distribution of Resource Consumption Across Activities Direct Labor Order Customer Total Support Processing Support Other 100% 20% 25% Wages and salaries 30% 25% 45% 100% Other overhead costs 20% 15% 20% During the year, Silicon Optics completed an order for a special optical switch for a new customer, Indus Telecom. This customer did not order any other products during the year. Data concerning that order follow: Data Concerning the Indus Telecom Order Selling price 265 per unit Units ordered 100 units 259 per unit Direct materials Direct labor-hours 1 DLH per unit 22 per DLH Direct labor rate
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