Exercise 7-16 Comprehensive Activity-Based Costing Exercise [LO2, LO3, Lo4] Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs $ 297, 500 164, 000 Total overhead costs $461, 500 Activity Cost Pool Direct 1abour support Order processing Customer support Other Activity Keasure Total Activity Nunber of direct labour-hours Number of orders Number of customers These costs are not allocated 12, 205 DLHs 500 orders 150 cus tomers to products or customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Support 15% 10% Order Custoner Support Total 100% 100% Processing Wages and salaries Other overhead costs 40% 25% 35% 25% Other 10% 40% 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: 217 per unit Selling price Units ordered Direct materials Direct labour-hours Direct 1abour rate 185 units 195 per unit 0.6 DLH per unit 25 per DLH Required 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools Direct Labour Support Order ustomer Processing Support Other Totals 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.) Activity Cost Pools Direct labour support Order processing Customer support Activity Rate per DLH per order per customer 3. Prepare a report showing the overhead costs for the order from HurnTel, including customer support costs. (Round your answers to 2 decimal places.) Activity Rate Activity Activity Cost Pool Direct labour support Order processing Customer support Total ABC Cost per DLH per order per customer DLHs orders customer 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