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

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 . . . . . . . . . . . . . . . $295 per unit
Units ordered . . . . . . . . . . . . . . 100 units
Direct materials . . . . . . . . . . . . $264 per unit
Direct labor-hours . . . . . . . . . . 0.5 DLH per unit
Direct labor rate . . . . . . . . . . . . $25 per DLH

Required:
1. Using Exhibit 8€“5 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.
2. Using Exhibit 8€“6 as a guide, compute the activity rates for the activity cost pools.3. Prepare a report showing the overhead costs for the order from Indus Telecom, including customer support costs.
4. Using Exhibit 8€“11 as a guide, prepare a report showing the customer margin for IndusTelecom.

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Overhead Costs Wages and salaries Other overhead costs $350,000 200,000 Total overhead costs$550,000 Activity Cost Pool Activity Measure Total Activity Direct labor support Order processing Customer support. Other Number of direct labor-hours Number of orders Number of customers 10,000 DLHs 500 orders 100 customers These costs are not allocated to products or customers Not applicable Across Activity Cost Pools Direct Labor Order Customer Support Processing Support Other Total 35% 15% 25% 20% 10% 40% 100% 100% Other overhead costs 25%