Chapter 4: Applying Excel Enter a formula into each of the cells marked with a ? below Review Problem: Activity-Based Costing Data Deluxe Tourist Annual sales in units 2,000 10,000 Direct materials per unit $25 $17 Direct labor-hours per unit 5 4 Direct labor rate $12 per DLH Estimated Overhead Expected Activity Activities and Activity Measures Cost Deluxe Tourist Total Labor related (direct labor-hours) $80,000 10,000 40,000 50,000 Machine setups (setups) 150,000 3,000 2,000 5,000 Production orders (orders) 70,000 100 300 400 General factory (machine-hours) 250,000 12,000 28,000 40,000 $550,000 Compute the predetermined overhead rate Estimated total manufacturing overhead (a) $550,000 Estimated total amount of the allocation base (b) 50,000 DLHs Predetermined overhead rate (a) (b) $11.00 per DLH Compute the manufacturing overhead applied Deluxe Tourist Direct labor-hours per unit (a) ? DLHs ? DLHs Predetermined overhead rate (b) $11.00 per DLH $11.00 per DLH Manufacturing overhead applied per unit (a) (b) ? ? Compute traditional unit product costs Deluxe Tourist Direct materials ? ? Direct labor ? ? Manufacturing overhead applied ? ? Traditonal unit product cost ? ? Compute activity rates Estimated Overhead Activities Cost Total Expected Activity Activity Rate Labor related ? 50,000 DLHs ? per DLH Machine setups ? 5,000 setups ? per setup Production orders ? 400 orders ? per order General factory ? 40,000 MHs ? per MH Compute the ABC overhead cost per unit Deluxe Tourist Activity Expected Expected Activities Rate Activity Amount Activity Amount Labor related ? ? ? ? ? Machine setups ? ? ? ? ? Production orders ? ? ? ? ? General factory ? ? ? ? ? Total overhead cost assigned (a) ? ? Number of units produced (b) ? ? ABC overhead cost per unit (a) (b) ? ? Compute the ABC unit product costs Deluxe Tourist Direct materials ? ? Direct labor ? ? ABC overhead cost per unit (see above) ? ? ABC unit product cost ? ?