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Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and salaries $348,000 Other overhead costs 195,000 Total

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Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and salaries $348,000 Other overhead costs 195,000 Total overhead costs 543,000 Activity Cost Pool Activity Measure Total Activity Direct labor Number of direct labor-hours 12,000 DLHS support Order processing Number of orders 560 orders Customer support Number of customers 75 customers Other This is an organization-sustaining Not applicable activity Distribution of Resource Consumption Across Activities Direct Order Customer Labor Support Processing Support Other Total 20% 35% 20% 25% 100% 30% 15% 15% 40% 100% Wages and salaries Other overhead costs 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 Direct materials $260 per unit Distribution of Resource Consumption Across Activities Direct Order Customer Labor Support Processing Support Other Total 20% 35% 20% 25% 100% 30% 15% 15% 40% 100% Wages and salaries Other overhead costs 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 Direct materials $260 per unit Direct labor-hours unit Direct labor rate $ 23 per DLH 04 DLH per Required: 1. Prepare a report showing the first stage allocations of overhead costs to the activity cost pools. Direct Labor Support Order Processing Customer Support Other Totals Wages and salaries Other overhead costs Total cost I 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) per DLH Activity Cost Pool Activity Rate Direct labor support Order processing Customer support per order per customer 3. Compute the overhead costs for the order from Indus Telecom, including customer support costs. (Round your intermediate calculations and final answers to 2 decimal places.) ABC Cost Activity Cost Pool Direct labor support Order processing Customer support Total 7. Prepare a report showing the customer margin for Indus Telecom. (Negative customer margins should be indicated by a minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Indus Telecom Customer Margin-ABC Analysis Costs: Customer margin

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