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Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs 348,000 Wages and salaries Other overhead costs 204,000 Total
Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs 348,000 Wages and salaries Other overhead costs 204,000 Total overhead costs $552,000 Total Activity 14,500 DLHS Activity Cost Pool Activity Measure Direct labor Number of direct labor-hours support Order processing Number of orders Customer support Number of customers Other This is an organization- sustaining activity 510 orders 120 customers Not applicable Distribution of Resource Consumption Across Activities Direct Order Customer Labor Processing Support Support Other Total 10% 30% 20% 40% 100% 25% 20% 20% 35% 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 $260 per unit Units ordered 100 units Direct materials $268 per unit Direct labor-hours 0.3 unit Direct labor rate $ 25 per DLH DLH per 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. Direct Labor Order Customer Support Processing 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.) Activity Cost Pool Activity Rate per DLH 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.) Activity Cost Pool ABC Cost Direct labor support Order processing Customer support Total 4. 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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