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:
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 13MC: Activity-based costing systems: A. use a single predetermined overhead rate based on machine hours...
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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:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdb469f5-07ec-4572-9b6b-17976ac5f171%2Fbf4b0fa0-5643-41bb-a2c6-8a8c6e76d620%2Fdtwitl_processed.jpeg&w=3840&q=75)
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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