Question: Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs S 355,000 199,000




Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs S 355,000 199,000 Total overhead costs $ 554,000 Activity Cost Pool Direct labor support Order processing Customer support Other Activity Measure Total Activity 6,500 DLHs 460 orders Number of direct labor-hours Number of orders Number of customers This is an organization-sustaining activity 100 customers Not applicable Distribution of Resource Consumption Across Activities Direct Labor Order Customer Support Processing Support Wages and salaries Other overhead costs 10% 20% 30% 15% 15% 20% Other 45% 45% Total 100% 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 $310 per unit $ 257 per unit $ 100 units 0.7 DLH per unit 24 per DLH
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