EX7-11 Silicon Optics has supplied the following data for use inits activity-based costing system.
Wages andSalaries $350,000
Otheroverhead costs 200,000
Totaloverhead costs $550,000
Activity cost pool Activity Measure Total Activity
Direct laborsupport……Number of directlabor-hours 10,000 DLHs
Orderprocessing………Number oforders 500 orders
Customersupport………Number ofcustomers 100 customers
Other…………………….This is an org-sustainingactivity N/A
And so on…………
1. Using exhibit 7-5 as a guide. prepare a report showing thefirst-stage allocations of overhead costs to activity costpools.
2. Using exhibit 7-6 as a guide, compute the activity rates for theactivity cost pools.
3. Prepare a report showing the overhead costs for the order fromIndus Telecom, include customer support costs.
4. Using Exhibit 7-11 as a guide, prepare a report showing thecustomer margin for Indus Telecom.
QUESTION TITLE :- Silicon Optics has supplied the following data for use in its activity-based costing system
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