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:

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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%
Distribution of Resource Consumption across Activity Cost Pools
Direct Labour
Order
Processing
35%
25%
Total Activity
7,760 DLHS
Customer
Support
30%
25%
450 orders
130 customers
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:
Transcribed Image Text: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% Distribution of Resource Consumption across Activity Cost Pools Direct Labour Order Processing 35% 25% Total Activity 7,760 DLHS Customer Support 30% 25% 450 orders 130 customers 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:
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