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Beasley Company makes three types of exercise machines. Data have been accumulated for four possible overhead drivers. Data for these four possible drivers are shown
Beasley Company makes three types of exercise machines. Data have been accumulated for four possible overhead drivers. Data for these four possible drivers are shown in rows 4 to 7 of the following spreadsheet. Construct a spreadsheet that will allocate overhead and calculate unit cost for each of these alternative drivers. A screen capture of the spreadsheet and data follows. This spreadsheet uses a function called vertical lookup. This function can pull the appropriate values from a table. The form of this function is = VLOOKUP (value, table, column#). In this example, the table is in cells B4 to K7. Three examples of the use of VLOOKUP follow. Cell C15 is = VLOOKUP (B15, B4:K7, 2). This function operates by using the one (1) in cell B15 to look up a value in the table. Notice that the table is defined as B4:K7 and that the function is looking up the value in the second column, which is Units. Cell E15 is = VLOOKUP (B15, B4:K7, 10). In this case, the function is looking up the value in the tenth column, which is 45,000. Be sure to count empty columns. Cell E20 is = VLOOKUP (B15, B4:K7, 4)*G15. In this case, the function is looking up the value in the fourth column, which is $10,000. Be sure to count empty columns. Cells 115, G20, and I20 also use the VLOOKUP function. After completing the spreadsheet, you can change the value in cell B15 (1-4) to see the effect of choosing a different driver for overhead
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