Calculation of contribution margin for Calandra Telecom | |
Amount ($) | |
Selling price | 700 |
Less:Variable cost | |
Direct materials | 350 |
Direct Labor (.5*$25) | 12.5 |
Contribution (A) | 337.5 |
No of units (B) | 100 |
Total contribution (A*B) | 33750 |
Less:Allocated overhead | |
Direct Labor Support (100*.5*31) | 1550 |
Order Processing (1*610) | 610 |
Customer Support (1*2550) | 2550 |
Contribution Margin | 29040 |
Notes:
Calculation of activity cost | |||||
Direct Labor Support | Order Processing | Customer Support | Other | ||
Wages & Salaries | 210000 | 245000 | 175000 | 70000 | |
($ 700000*30%) | ($ 700000*35%) | ($ 700000*25%) | ($ 700000*10%) | ||
Other Overhead Cost | 100000 | 60000 | 80000 | 160000 | |
$ 400000*25% | $ 400000*15% | $ 400000*20% | $ 400000*40% | ||
Total | 310000 | 305000 | 255000 | 230000 | |
Calculation of cost driver rate | |||||||
Category | Estimated cost ($) (A) | Cost driver | Amount of cost driver (B) | Cost per driver (A/B) | |||
Direct Labor cost | 310000 | No of direct labour hours | 10000 | 31.00 | |||
Order Processing | 305000 | No of orders | 500 | 610.00 | |||
Customer Support | 255000 | No of customers | 100 | 2,550.00 |
3. Number of orders will be one only because Calandra Telecom has not given any other order during the year.
4. Number of customer will be one only
5.Other cost will not be allocated since they are not paid for the customer.
RW White has supplied the following data for use in its activity based costing systemm Wages and ...
CR Black has supplied the following data for use in its activity based costing system: Overhead Costs: Wages and Salaries $ 700,000 Other Overhead Costs $ 400,000 Total Overhead Costs $1,100,000 Activity Cost Pool: Direct Labor Support Order Processing Customer Support Other Activity Measure: Number of direct labor-hours Number of orders Number of Customers This is an organizationSustaining activity Total Activity: 10,000 DLHs 500 Orders 100 customers Not applicable Selling Price $700 per unit Units Ordered 100 units Direct materials...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs $ 300,000 100,000 $ 400,000 Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Total Activity for the Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Order...
Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $ 295,000 Other overhead costs 163,000 Total overhead costs $ 458,000 Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labour-hours 12,110 DLHs Order processing Number of orders 500 orders Customer support Number of customers 120 customers Other These costs are not allocated to products or customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs $ зее, еее Wages and salaries Other overhead costs 100, 000 $ 400,000 Total overhead costs Total Activity for the Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities...
Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs Wages and salaries Other overhead costs Total overhead costs $ 300,000 100,000 $ 400,000 Activity Cost Pool Supporting direct labor Order processing Customer support Other Activity Measure Number of direct labor-hours Number of customer orders Number of customers This is an organization- sustaining activity Total Activity for the Year 20,000 DLHS 400 orders 200 customers Not applicable Distribution of Resource Consumption Across Activities Supporting Order...
Exercise 7-16 Comprehensive Activity-Based Costing Exercise [LO2, LO3, LO4] Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $ 295,000 Other overhead costs 163,000 Total overhead costs $ 458,000 Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labour-hours 12,110 DLHs Order processing Number of orders 500 orders Customer support Number of customers 120 customers Other These costs are not allocated to products or customers NA Distribution...
Exercise 7-16 Comprehensive Activity-Based Costing Exercise (LO2, LO3, LO4] Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs $ 280,000 157,000 Total overhead costs $437,000 Activity Cost Pool Direct labour support Order processing Customer support Other Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Total Activity 7,955 DLHS 450 orders 200 customers NA Distribution of...
Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries $ 295,000 Other overhead costs 163,000 Total overhead costs $ 458,000 Activity Cost Pool Activity Measure Total Activity Direct labour support Number of direct labour-hours 12,110 DLHs Order processing Number of orders 500 orders Customer support Number of customers 120 customers Other These costs are not allocated to products or customers NA Distribution of Resource Consumption across Activity Cost Pools Direct Labour...
Exercise 7-16 Comprehensive Activity-Based Costing Exercise (LO2, LO3, LO4) Cancico Communications has supplied the following data for use in its ABC system: Overhead Costs Wages and salaries Other overhead costs $267,500 152,000 Total overhead costs $419,500 Activity Cost Pool Direct labour support Order processing Customer support Other Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Total Activity 7,630 DLHS 450 orders 110 customers Distribution of Resource Consumption...
Exercise 7-16 Comprehensive Activity-Based Costing Exercise (LO2, LO3, LO4] Cancico Communications has supplied the following data for use in its ABC system: 25 Overhead Costs Wages and salaries Other overhead costs points $295,000 163,000 Total overhead costs $458,000 eBook References Activity Cost Pool Direct labour support Order processing Customer support Other Activity Measure Number of direct labour-hours Number of orders Number of customers These costs are not allocated to products or customers Total Activity 12,110 DLHS 500 orders 120 customers...