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Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and salaries $ 357,000 Other overhead costs 193,000

Silicon Optics has supplied the following data for use in its activity-based costing system:

Overhead Costs
Wages and salaries $ 357,000
Other overhead costs 193,000
Total overhead costs $ 550,000

Activity Cost Pool Activity Measure Total Activity
Direct labor support Number of direct labor-hours 9,000 DLHs
Order processing Number of orders 490 orders
Customer support Number of customers 115 customers
Other This is an organization-sustaining activity Not applicable

Distribution of Resource Consumption Across Activities

Direct Labor Support Order Processing Customer Support Other Total
Wages and salaries 10 % 25 % 20 % 45 % 100 %
Other overhead costs 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 $ 325 per unit
Units ordered 100 units
Direct materials $ 256 per unit
Direct labor-hours 1.1 DLH per unit
Direct labor rate $ 26 per DLH

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.)

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