Cancico Communications has supplied the following data for use in its ABC system:   Overhead Costs Wages and salaries $ 292,500   Other overhead costs   162,000   Total overhead costs $ 454,500       Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labour-hours 12,015 DLHs Order processing Number of orders 450 orders Customer support Number of customers 150 customers Other These costs are not allocated to products or customers NA       Distribution of Resource Consumption across Activity Cost Pools   Direct Labour Support Order Processing Customer Support Other Total Wages and salaries   15 %   40 %   35 %   10 %   100 % Other overhead costs   10 %   25 %   25 %   40 %   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:       Selling price $ 214 per unit Units ordered   175 units Direct materials $ 193 per unit Direct labour-hours   0.6 DLH per unit Direct labour rate $ 23 per DLH     Required: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.) 3. Prepare a report showing the overhead costs for the order from HurnTel, including customer support costs. (Round your answers to 2 decimal places.) 4. Prepare a report showing the customer margin for HurnTel. (Round your answers to 2 decimal places.)

Carlise has identified the following information about its overhead activity pools and the two product lines: Cost Assigned to Pool $ 20,910 $ 85,120 $ 34,790 Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Quantity or Amount Consumed by Quantity or Amount Consumed by Indoor Line Outdoor Line Complete this question by entering your answers in the tabs below. Indoor Model Outdoor Model Total Required: 1. Suppose Carlise used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. 2. Calculate the activity proportions for each activity pool in Carlise's ABC system. 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. 4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. 5. Compare the results for a traditional system…

Using excel spreadsheet models answer the following below.  Using the Direct Method allocate the service centre costs Using the Step Method allocate the service centre costs Using the Reciprocal Method allocate service centre costs

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Computing product costs in an ABC system The Alright Manufacturing Company in Rochester, Minnesota, assembles and tests electronic components used in smartphones. Consider the following data regarding component T24 (amounts are per unit): Requirements Complete the missing items for the two tables. Why might managers favor this ABC system instead of Alright’s older system, which allocated all manufacturing overhead costs on the basis of direct labor hours?

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Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:        Activity Cost Pools (and Activity Measures Estimated Overhead Cost Machine related (machine-hours) R81 600 Batch setup (setups). R387 000 General factory (direct labour-hours). R274 800       Expected Activity Activity Cost Pools Total Product X Product Y Machine related 8,000 3,000 5,000 Batch setup 10,000 2,000 8,000 General factory 12,000 7,000 5,000  Assuming that actual activity turns out to be the same as expected activity,  calculate the total amount of overhead cost allocated to Product X.

Gold Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product RST. Direct material cost per unit of RST Total estimated manufacturing overhead Total cost per unit of RST Total estimated machine hours, Direct labor cost per unit of RST $ 19 $308,000 $ 84 154,000 MH 27 $

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