Data for use in its activity-based costing system

Assignment Help Financial Accounting

Reference no: EM131294958

Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and salaries $ 354,000 Other overhead costs 203,000 Total overhead costs $ 557,000 Activity Cost Pool Activity Measure Total Activity Direct labor support Number of direct labor-hours 13,000 DLHs Order processing Number of orders 470 orders Customer support Number of customers 115 customers Other This is an organization-sustaining activity Not applicable Distribution of Resource Consumption Across Activities Direct Labor Support Order Processing Customer Support Other Total Wages and salaries 20 % 35 % 20 % 25 % 100 % Other overhead costs 25 % 15 % 15 % 45 % 100 % During the year, Silicon Optics completed an order for a special optical switch for a new customer, Indus Telecom. This customer did not order any other products during the year. Data concerning that order follow: Data Concerning the Indus Telecom Order Selling price $ 325 per unit Units ordered 100 units Direct materials $ 270 per unit Direct labor-hours 0.7 DLH per unit Direct labor rate $ 26 per DLH Required: 1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools. (Omit the "$" sign in your response.)Compute the activity rates for the activity cost poolsCompute the overhead costs for the order from Indus Telecom, including customer support costsPrepare a report showing the customer margin for Indus Telecom.

Reference no: EM131294958

Questions Cloud

Compute websters taxable income and income tax liability : Webster, Inc. has the following items of items of income and expense for 2016, it first year of operations. Webster began operations on April 1 and uses a calendar year end. Webster wants to minimize its 2016 income tax liability, which means electin..

Adjusted basis of the property for income tax purposes : Ashley inherited all of the property of her aunt, who died in 2016. Her aunt's adjusted basis for the property at the date of death was $1,200,000. The property's fair market value was $4,500,000 at the date of death and $4,800,000 six months after t..

When factory payroll costs are assigned to products : When factory payroll costs are assigned to products in a job cost accounting system :

Data for use in its activity-based costing system : Silicon Optics has supplied the following data for use in its activity-based costing system: Overhead Costs Wages and salaries $ 354,000 Other overhead costs 203,000 Total overhead costs $ 557,000 Activity Cost Pool Activity Measure Total Activity Di..

Prepare depreciation schedule using the straight-line method : Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban. The cost of the Suburban is $8,800. The vehicle is purchased in late June and will be put into use on July 1..

The grants would like to file joint tax return for the year : Bob (age 43) and Melissa Grant (age 43) are married and live in Lexington, Kentucky. The Grants have two children Jared, age 15, and Alese, age 12. The Grants would like to file a joint tax return for the year. The following information relates to th..

New sound system-write a journal entry : You purchased a new sound system that costs 2,500. You signed a six month 10% installment note payable for the cost of the sound system. The sound system has an estimated useful life of 5 years the residual salvage value is 100. Write a journal entry..

User Account

All Pages