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Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs 350,000 Wages and salaries 204,000 Other overhead costs 554,000
Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs 350,000 Wages and salaries 204,000 Other overhead costs 554,000 Total overhead costs Activity Cost Pool Direct labor Activity Measure Total Activity Number of direct labor-hours 12,500 DLHS support Order processing Number of orders Customer support Number of customers Other 560 orders 100 customers This is an organization-sustaining Not applicable activity Wages and salaries Other overhead costs Distribution of Resource Consumption Across Activities Direct Labor Support 10% Order Customer Processing Support Other Total 25% 15% 50% 100% 25% 15% 15% 45% 100% 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: 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 Units ordered Direct materials Direct labor-hours Direct labor rate $295 per unit 100 units $265 per unit DLH per unit $ 29 per DLH Required: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. (Omit the "$" sign in your response.) Direct Labor 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. Omit the "$" sign in your response.) Activity Cost Pools Activity Rate Direct labor $ per DLH support Order processing $ per order Customer support 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. Omit the "$" sign in your response.) Activity Cost Pool Direct labor support Order processing Customer support Total ABC Cost 4. Prepare a report showing the customer margin for Indus Telecom. (Input all amounts as positive values except losses which should be Indicated by a minus sign. Round your Intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.) (Click to select) Costs: (Click to select) (Click to select) (Click to select) (Click to select) Indus Telecom Customer Margin-ABC Analysis (Click to select) Customer margin
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