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Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs $351,000 201,000 Total
Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs $351,000 201,000 Total overhead costs $ 552,000 Activity Cost Pool Direct labor support Order processing Customer support Other Total Activity 480 orders Not applicable Activity Measure 14,000 DLHs Number of direct labor-hours Number of orders Number of customers This is an organization-sustaining activity 105 customers Distribution of Resource Consumption Across Activities Direct Labor Order Customer Support Processing Support Wages and salaries Other overhead costs 10% 30% 30% 15% 20% 25% Other 45% 30% Total 100% 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 Direct materials Direct labor-hours Direct labor rate $ 340 per unit $ 259 per unit $ 100 units 0.4 DLH per unit 24 per DLH
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