Question: Exercise 716 Comprehensive Activity-Based Costing Exercise [L02, L03, L04] Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages

 Exercise 716 Comprehensive Activity-Based Costing Exercise [L02, L03, L04] Cancico Communicationshas supplied the following data for use in its ABC system: OverheadCosts Wages and salaries $267,500 Other overhead costs _l2L229_ Total overhead costs

$419,500 I Activity Cost Pool Activity Measure Total Activity Direct labour supportNumber of direct labourhours 7,630 DLHs Order processing Number of orders 450orders Customer support Number of customers 110 customers Other These costs are

Exercise 716 Comprehensive Activity-Based Costing Exercise [L02, L03, L04] Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $267,500 Other overhead costs _l2L229_ Total overhead costs $419,500 I Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labourhours 7,630 DLHs Order processing Number of orders 450 orders Customer support Number of customers 110 customers Other These costs are not allocated to products or customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Order Customer Support Processing Support Other Total Wages and salaries 20% 35% 30% 15% 100% Other overhead costs 15% 25% 25% 35% 100% ' 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 $224 per unit Units ordered 125 units Direct materials $197 per unit Direct labourhours 0.6 DLH per unit Direct labour rate $ 24 per DLH ' Required: 1. Prepare a report showing the firststage allocations of overhead costs to the activity cost pools. Wages and salaries Other overhead costs Total cost 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) Direct labour support _ per DLH 3. Prepare a report showing the overhead costs for the order from HurnTel, including customer support costs. (Round your answers to 2 decimal places.) Direct labour support __ __ Order processing Customer support Total customer 0.00 0.00 4. Prepare a report showing the customer margin for HurnTeL (Round your answers to 2 decimal places.) Sales Costs: Direct materials Direct labour Direct labour support overhead Order processing overhead Customer support overhead Customer margin $ 0.00

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