Answered step by step
Verified Expert Solution
Question
1 Approved Answer
activity based costing, got that part done but now i have to determine product margin under traditional can't figure out how qattachments_cc1082328ea836f90aa50f54f9397b0af531810b.xlsx Chapter 7: Applying
activity based costing, got that part done but now i have to determine product margin under traditional can't figure out how
qattachments_cc1082328ea836f90aa50f54f9397b0af531810b.xlsx Chapter 7: Applying Excel Data Manufacturing overhead Selling and administrative overhead Manufacturing overhead Selling and administrative overhead Total activity $500,000 $300,000 Assembling Units 50% 10% 1,000 units OfficeMart orders: Customers Orders Number of filing cabinets ordered in total Selling price Direct materials Direct labor Processing Supporting Orders Customers 35% 5% 45% 25% 250 100 orders customers Other 10% 20% 1 customer 4 orders 80 units $595 $180 $50 Enter a formula into each of the cells marked with a ? below Review Problem: Activity-Based Costing Perform the first stage allocations Manufacturing overhead Selling and administrative overhead Total cost Assembling Units $250,000 30,000 $280,000 Compute the activity rates Activity Cost Pools Assembling units Processing orders Supporting customers Total Cost $280,000 $310,000 $100,000 Processing Orders $175,000 135,000 $310,000 Supporting Customers $25,000 75,000 $100,000 Total Activity 1,000 units 250 orders 100 customers Compute the overhead cost attributable to the OfficeMart orders Activity Cost Pools Activity Rate Assembling units $280 per unit Processing orders $1,240 per order Supporting customers $1,000 per customer Determine the product margin for the OfficeMart orders under a traditional cost system Manufacturing overhead $499,375 Total activity ? units Manufacturing overhead per unit ? per unit $47,600 $14,400 4,000 ? ? ? Total $500,000 300,000 $800,000 Activity Rate $280 per unit $1,240 per order $1,000 per customer Activity 80 units 4 orders 1 customer Determine the customer margin for the OfficeMart orders under Activity-Based Costing Sales $47,600 Costs: Direct materials $14,400 Direct labor 4,000 Unit-related overhead $22,400 Order-related overhead $4,960 Customer-related overhead $1,000 $46,760 Customer margin $840 Sales Costs: Direct materials Direct labor Manufacturing overhead Traditional costing product margin Other $50,000 60,000 $110,000 ABC Cost $22,400 $4,960 $1,000 Chapter 7: Applying Excel AFTER completing the blank form, copy rows 4 to 62 to this sheet and change the units ordered in cell B16 to 160 & complete requirement 1's questions Data Answers to Requirement 1 Chapter 7: Applying Excel AFTER completing the blank form, copy rows 4 to 62 to this sheet and change to the data given on page 303 & complete requirement 2's questions Data Answers to requirement 2: Chapter 7: Applying Excel AFTER completing requirement 2, copy rows 4 to 62 to this sheet and change to the data given on the bottom of page 303 & complete requirement 3's questions on page 304. Data Answers to Requirement 3Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started