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Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and salaries $350,000 Other overhead costs 206,000 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 $350,000 Other overhead costs 206,000 Total overhead costs 556,000 Activity Cost Pool Activity Measure Total Activity Direct labor support Number of direct labor-hours 5,000 DLHS Order processing Number of orders 580 orders Customer support Number of customers 110 customers Other This is an organization-sustaining Not applicable activity Distribution of Resource Consumption Across activity Distribution of Resource Consumption Across Activities Direct Order Labor Customer Support Processing Support Other Total 10% 30% 25% 35% 100% 30% 15% 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 $345 per unit Units ordered 100 units Direct materials $266 per unit DLH per Direct labor-hours 0.9 unit Direct labor rate $ 23 per DLH Units Ordereu Direct materials IUU units $266 per unit Direct labor-hours DLH per Direct labor rate 0.9 unit $ 23 per DLH Required: 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 Support Processing Support Other Wages and salaries Totals 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 Direct labor support Order processing Customer support per DLH per order per customer Next per DLH Dnell Dour 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 Saved 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: S Customer margin

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