Comprehensive Activity-Based Costing Exercise
Refer to the data for Silicon Optics in Exercise 7-1 1.
Required:
1. Using Exhibit 7A-I as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.
2. Using Exhibit 7A-2as a guide, compute the activity rates for the activity cost pools.
3. Using Exhibit 7A-3 as a guide, prepare a report showing the overhead costs for the order from Indus Telecom including customer support costs.
4. Using Exhibit 7- 11 as a guide, prepare a report showing the customer margin for Indus Telecom.
5. Using Exhibit 7A-5as a guide, prepare an action analysis report showing the customer margin for Indus Telecom. Direct materials should be coded as a Green cost, direct labor and wages and salaries as Yellow costs, and other overhead costs as a Red cost.
6. What action, if any.do you recommend as a result of the above analyses?
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