# Question

Cancico Communications has supplied the following data for use in its ABC system:
During the year, Cancico Communications completed an order for special telephone equipment for a new customer, HurnTel. This customer did not order any other products during the year. Data concerning that order follow:
Selling price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$220 per unit
Units ordered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 units
Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 195 per unit
Direct labour-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 DLH per unit
Direct labour rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 22 per DLH
Required:
1. Using Exhibit as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.
2. Using Exhibit as a guide, compute the activity rates for the activity cost pools.
3. Prepare a report showing the overhead costs for the order from HurnTel, including customer support costs.
4. Using Exhibit as a guide, prepare a report showing the customer margin for HurnTel.

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