EXERCISE 7-11 Comprehensive Activity-Based Costing Exercise [L02, L03, L04, L05] Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs $350,000 200,000 $550,000 Activity Cost Pool Activity Measure Direct labor support. Number of direct labor-hours Order processing.. Number of orders Customer support.. Number of customers Other This is an organization-sustaining activity Total Activity 10,000 DLHS 500 orders 100 customers Not applicable Distribution of Resource Consumption Across Activities Wages and salaries Other overhead costs. Direct Labor Order Support Processing Customer Support Other Total 30% 35% 25% 10% 100% 25% 15% 20% 40% 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 $295 per unit 100 units $264 per unit 0.5 DLH per unit $25 per DLH Required: 1. Using Exhibit 7-5 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. 2. Using Exhibit 7-6 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 cus- tomer support costs. 4. Using Exhibit 7-11 as a guide, prepare a report showing the customer margin for Indus Telecom