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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 Activity Measure Total Activity Direct labor Number of direct labor-hours 12,500 DLHS support Order processing Number of orders 560 orders Customer support Number of customers 100 customers Other This is an organization-sustaining Not applicable activity Wages and salaries Other overhead costs Distribution of Resource Consumption Across Activities Direct Labor Order Customer Support Processing Support Other Total 10% 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 Data Concerning the Indus Telecom Order Selling price Units ordered $295 per unit 100 units Direct materials Direct labor-hours $265 per unit DLH per unit Direct labor rate $ 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 $350000 $105000 O $122500 35000 Other overhead 200000 50000 costs 30000 40000 Total cost $550000 $155000 $152500 $ 127500 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 Direct labor Activity Rate $11.50 per DLH support Order processing $ Customer support 1275 O per 305 per order 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 ABC Cost Direct labor support $ 775 Order processing 305 Customer support Total 1275 $ 2355 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.) Indus Telecom Customer Margin-ABC Analysis Costs: Customer margin $
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