Accounting 352 - Spreadsheet Assignment #1 (Chapter 5)Speediprint owns a small printing press that prints leaflets, brochures, and advertising materials. Speediprint classifies its various printing jobs as standard jobs or special jobs. Speediprints simple job-costing system has two direct-cost categories (direct materials and direct labor) and a single indirect-cost pool. Speediprint operates at capacity and allocates all indirect costs using printing machine-hours as the allocation base.

Speediprint is concerned about the accuracy of the costs assigned to standard and special jobs and therefore is planning to implement an activity-based costing system. Speediprints ABC system would have the same direct-cost categories as its simple costing system. However, instead of a single indirect-cost pool there would now be six categories for assigning indirect costs: design, purchasing, setup, printing machine operations, marketing, and administration. To see how activity-based costing would affect the costs of standard and special jobs, Speediprint collects the following information for the fiscal year 2017 that just ended.Required

1.On one tab on a spreadsheet, prepare a report for management showing the calculation of the cost of a standard job and a special job under the simple costing system, the calculation of the same jobs under an ABC system, and a comparison of the two.

2.Copy your solution to a second tab. After seeing your initial report, management wants you to prepare a second report that increases machine operating costs by 10%. Alter the work you have saved in your second tab to prepare the report management has requested. Management has indicated that they may be requesting other reports with other alterations in costs. Prepare your spreadsheet to make these alternative reports simple to produce.

Accounting 352 - Spreadsheet Assignment #1 (Chapter 5) Speediprint owns a small printing press that prints leaflets, brochures, and advertising materials. Speediprint classifies its various printing jobs as standard jobs or special jobs. Speediprint's simple job-costing system has two direct-cost categories (direct materials and direct labor) and a single indirect-cost pool. Speediprint operates at capacity and allocates all indirect costs using printing machine-hours as the allocation base. Speediprint is concerned about the accuracy of the costs assigned to standard and special jobs and therefore is planning to implement an activity-based costing system. Speediprint's ABC system would have the same direct-cost categories as its simple costing system. However, instead of a single indirect-cost pool there would now be six categories for assigning indirect costs: design, purchasing, setup, printing machine operations, marketing, and administration. To see how activity-based costing would affect the costs of standard and special jobs, Speediprint collects the following information for the fiscal year 2017 that just ended. Home Insert Page Layout View Formulas B Data Review D G H Cause-and-Effect Relationship Between Allocation Base and Activity Cost Total 1 2 Number of printing jobs 3 Price per job 4 Cost of supplies per job 5 Direct labor costs per job 6 Printing machine-hours per job 7 Cost of printing machine operations Standard Job Special Job 400 200 $ 600 $ 750 $ 100 $ 125 $ 90 $ 100 10 10 $ 75,000 Indirect costs of operating printing machines increase with printing machine-hours 8 4 7 $ 45,000 Indirect setup costs increase with setup-hours 400 500 9 Setup-hours per job 10 Setup costs 11 Total number of purchase orders 12 Purchase order costs 13 14 Design costs $4,000 $16,000 $ 18,000 Indirect purchase order costs increase with number of purchase orders $ 20,000 Design costs are allocated to standard and special jobs based on a special study of the design department 15 5% Marketing costs as a percentage of 16 revenues 17 Administration costs 5% $ 19,500 $ 24,000 Demand for administrative resources increases with direct labor costs Required 1. On one tab on a spreadsheet, prepare a report for management showing the calculation of the cost of a standard job and a special job under the simple costing system, the calculation of the same jobs under an ABC system, and a comparison of the two. 2. Copy your solution to a second tab. After seeing your initial report, management wants you to prepare a second report that increases machine operating costs by 10%. Alter the work you have saved in your second tab to prepare the report management has requested. Management has indicated that they may be requesting other reports with other alterations in costs. Prepare your spreadsheet to make these alternative reports simple to produce. Accounting 352 - Spreadsheet Assignment #1 (Chapter 5) Speediprint owns a small printing press that prints leaflets, brochures, and advertising materials. Speediprint classifies its various printing jobs as standard jobs or special jobs. Speediprint's simple job-costing system has two direct-cost categories (direct materials and direct labor) and a single indirect-cost pool. Speediprint operates at capacity and allocates all indirect costs using printing machine-hours as the allocation base. Speediprint is concerned about the accuracy of the costs assigned to standard and special jobs and therefore is planning to implement an activity-based costing system. Speediprint's ABC system would have the same direct-cost categories as its simple costing system. However, instead of a single indirect-cost pool there would now be six categories for assigning indirect costs: design, purchasing, setup, printing machine operations, marketing, and administration. To see how activity-based costing would affect the costs of standard and special jobs, Speediprint collects the following information for the fiscal year 2017 that just ended. Home Insert Page Layout View Formulas B Data Review D G H Cause-and-Effect Relationship Between Allocation Base and Activity Cost Total 1 2 Number of printing jobs 3 Price per job 4 Cost of supplies per job 5 Direct labor costs per job 6 Printing machine-hours per job 7 Cost of printing machine operations Standard Job Special Job 400 200 $ 600 $ 750 $ 100 $ 125 $ 90 $ 100 10 10 $ 75,000 Indirect costs of operating printing machines increase with printing machine-hours 8 4 7 $ 45,000 Indirect setup costs increase with setup-hours 400 500 9 Setup-hours per job 10 Setup costs 11 Total number of purchase orders 12 Purchase order costs 13 14 Design costs $4,000 $16,000 $ 18,000 Indirect purchase order costs increase with number of purchase orders $ 20,000 Design costs are allocated to standard and special jobs based on a special study of the design department 15 5% Marketing costs as a percentage of 16 revenues 17 Administration costs 5% $ 19,500 $ 24,000 Demand for administrative resources increases with direct labor costs Required 1. On one tab on a spreadsheet, prepare a report for management showing the calculation of the cost of a standard job and a special job under the simple costing system, the calculation of the same jobs under an ABC system, and a comparison of the two. 2. Copy your solution to a second tab. After seeing your initial report, management wants you to prepare a second report that increases machine operating costs by 10%. Alter the work you have saved in your second tab to prepare the report management has requested. Management has indicated that they may be requesting other reports with other alterations in costs. Prepare your spreadsheet to make these alternative reports simple to produce