You are given a choice of taking the simple interest on 100,000 invested for 2 years

EX7-11 Silicon Optics has supplied the following data for use in its activity-based costing system.
     Overhead Costs
          Wages and Salaries   $350,000
          Other overhead costs  200,000
          Total overhead costs  $550,000

Activity cost pool Activity Measure Total Activity
          Direct labor support......Number of direct labor-hours          10,000 DLHs
           Order processing.........Number of orders                              500 orders
          Customer support.........Number of customers                         100 customers
          Other.........................This is an org-sustaining activity         N/A

And so on............

REQUIRED:
1. Using exhibit 7-5 as a guide. prepare a report showing the first-stage allocations of overhead costs to activity cost pools.
2. Using exhibit 7-6 as a guide, compute the activity rates for the activity cost pools.
3. Prepare a report showing the overhead costs for the order from Indus Telecom, include customer support costs.
4. Using Exhibit 7-11 as a guide, prepare a report showing the customer margin for Indus Telecom.

Managerial Accounting - 14th Edition Garrison Noreen Brewer

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