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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 $302,500 166,000 Total overhead costs $468,500 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 12,395 DLHS 500 orders 180 customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour Support 15% 10% Order Processing Customer Support 35% 25% 40% Wages and salaries Other overhead costs Other 10% 40% Total 100% 100% 25% 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 Units ordered Direct materials Direct labour-hours Direct labour rate $ 219 per unit 195 units $ 197 per unit 0.6 DLH per unit $ 27 per DLH 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 salaries Other overhead costs Total cost $ 0 $ 0 $ 0 $ 0 $ 0 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 Cost Pool Direct labour support Order processing Customer support Total Activity Rate per DLH per order per customer Activity DLHS orders customer ABC Cost $ 0.00 $ 0.00 $ 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 0.00 $

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