Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs Activity Cost Pool Direct labour support Order processing Customer support Other Wages and salaries Other overhead costs. $272,500 154,000 $426,500 Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Support 20% 15% Total Activity 7,760 DLHS Customer Support 30% 25% 450 orders 130 customers Distribution of Resource Consumption across Activity Cost Pools Direct Labour Order Processing 35% 25% NA Other 15% 35% Total 100% 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:
Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs Activity Cost Pool Direct labour support Order processing Customer support Other Wages and salaries Other overhead costs. $272,500 154,000 $426,500 Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Support 20% 15% Total Activity 7,760 DLHS Customer Support 30% 25% 450 orders 130 customers Distribution of Resource Consumption across Activity Cost Pools Direct Labour Order Processing 35% 25% NA Other 15% 35% Total 100% 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:
Chapter1: Financial Statements And Business Decisions
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