197000 Order support Number of Support Processing Support Ot

197.000 Order support Number of Support Processing Support Other Total Telecom. This customer did not order anry other products during the year Dala conceming that order ollow Required

Solution

STATEMENT SHOWING FIRST STAGE ALLOCATION OF COST TO ACTIVITY POOL BASIS OF SUPPORTING LABOUR ORDER PROCESSING CUSTOMER SUPPORT OTHERS TOTAL APPORTION IN $ IN $ IN $ IN $ IN $ Wages and salaries 20:35:20:25 68,600 120,050 68,600 85,750 343,000 Other Overheads cost 25:15:20:40 49,250 29,550 39,400 78,800 197,000 TOTAL COST OF ACTIVITY 117,850 149,600 108,000 164,550 540,000 STATEMENT SHOWING ACTIVITY RATE OF ACTIVITY POOL Activity Total Expected Activity ACTIVITY COST POOL Measures Overheads Activity Rate Supporting labour DLH 117,850 7,000 16.84 Order processing Orders 149,600 500 299.20 Customer support Customer 108,000 70 1,542.86 Overheads cost for order from Indus telecom: Direct labor support (90 DLH @ 16.84) 1515.6 Order processing (1 order @ 299.20) 299.2 Customer support (1 customer @ 1542.86) 1542.86 Total Overheads cost 3357.66 Customer margin: Sales revenue (100 units @300 per unit) 30000 Cost: Direct material (100 units @ 257) 25700 Direct labour (90 DLH @ 25) 2250 Direct labor support (90 DLH @ 16.84) 1515.6 Order processing (1 order @ 299.20) 299.2 Customer support (1 customer @ 1542.86) 1542.86 Net customer margin -1307.66