question archive Exercise 7-16 Comprehensive Activity-Based Costing Exercise (LO2, LO3, L04) Cancico Communications has supplied the following data for use in its ABC system Overhead Costs Wages and salaries Other overhead costs Total overhead costs $265,000 151,000 $416,000 Activity Cost Pool Direct labour support Order processing Customer support other Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Total Activity 7,565 DLHS 450 orders 140 customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Order Customer Support Processing Support Other Total 20% 35% 30% 15% 100% 15% 25% 25% 35% 100% Wages and salaries Other overhead costs During the year, Cancico Communications completed in order for special telephone equipment for a new customer Huntel
Exercise 7-16 Comprehensive Activity-Based Costing Exercise (LO2, LO3, L04) Cancico Communications has supplied the following data for use in its ABC system Overhead Costs Wages and salaries Other overhead costs Total overhead costs $265,000 151,000 $416,000 Activity Cost Pool Direct labour support Order processing Customer support other Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Total Activity 7,565 DLHS 450 orders 140 customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Order Customer Support Processing Support Other Total 20% 35% 30% 15% 100% 15% 25% 25% 35% 100% Wages and salaries Other overhead costs During the year, Cancico Communications completed in order for special telephone equipment for a new customer Huntel
Subject:AccountingPrice: Bought3
Exercise 7-16 Comprehensive Activity-Based Costing Exercise (LO2, LO3, L04) Cancico Communications has supplied the following data for use in its ABC system Overhead Costs Wages and salaries Other overhead costs Total overhead costs $265,000 151,000 $416,000 Activity Cost Pool Direct labour support Order processing Customer support other Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Total Activity 7,565 DLHS 450 orders 140 customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Order Customer Support Processing Support Other Total 20% 35% 30% 15% 100% 15% 25% 25% 35% 100% Wages and salaries Other overhead costs During the year, Cancico Communications completed in order for special telephone equipment for a new customer Huntel. This customer did not order any other products during the year Data concerning that order follow Selling price units ordered Direct materials Direct labour-hours Direct labour rate $221 per unit 120 units $196 per unit 2.6 DLH per unit 523 per DH Required: 1. Prepare a report showing the first stage allocations of overhead costs to the activity cost pools. Direct Labour Support Order Processing Customer Support Other Totals Wages and salanes 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.) ABC Cost Activity Cost Pool Direct labour support Order processing Customer support Total Activity Rate per DLH per order per customer Activity 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
