A 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 $500,000 $300,000 P Assembling Processing Supporting 7 8 Manufacturing overhead Units Orders Customers Other 50% 35% 5% 10% 9 Selling and administrative overhead 10% 45% 25% 20% 10 Total activity 1,000 250 100 11 units orders customers 12 13 OfficeMart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 1 customer 4 orders 80 units $595 $180 $50 20 21 Enter a formula into each of the colls marked with a ? bolow 22 Review Problem: Activity-Based Costing 23 24 Perform the first stage allocations 25 26 Manufacturing overhead Assembling Units Processing Supporting S 27 Selling and administrative overhead 28 Total cost Orders 250,000 $175,000 $ 25,000 30,000 135,000 75,000 S 280,000 $310,000 $100,000 Customers Other $50,000 $ Total 500,000 60,000 $110,000 300,000 $800,000 29 30 Compute the activity rates 31 Activity Cost Pools 32 Assembling units 33 Processing orders 34 Supporting customers 35 Total Cost 280,000 $310,000 $ 100,000 36 Compute the overhead cost attributable to the OmceMart orders Activity Rate Total Activity 1,000 units 250 orders 100 customers Activity Rato $280 per unit $1,240 per order $1,000 per customer 37 Activity Cost Pools 38 Assembling units 39 Processing orders 40 Supporting customers 41 $280 per unit $1,240 per order $1,000 per customer 42 Determine the customer margin for the OmceMart orders under Activity-Based Costing Activity 80 units 4 orders 1 customer ABC Cost $22,400 $4,960 $1,000 43 Sales 44 Costs: 45 Direct materials 46 Direct labor 47 Unit-related overhead 48 Order-related overhead 49 Customer-related overhead 50 Customer margin $1 S 47,600 S 14,400 4,000 $22,400 $4,900 $1.000 46.760 $840 52 Determine the product margin for the OfficeMart orders under a traditional cost system 53 Manufacturing overhead 54 Total activity 55 Manufacturing overhead per unit 56 $500,000 1,000 units $500 per unit 57 Sales $ 47,600 58 Costs: 59 Direct maten als 14,400 GO Direct labor 4,000 61 Manufacturing overhead 40.000 58.400 62 Traditional costing product margin (10,800) 63 64 65