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.
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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