Chapter 5: Applying Excel
Data
Manufacturing overhead	$500,000
Selling and administrative overhead	$300,000
	Assembling Units	Processing Orders	Supporting Customers	Other
Manufacturing overhead	50%	35%	5%	10%
Selling and administrative overhead	10%	45%	25%	20%
Total activity	1,000	250	100
	units	orders	customers
OfficeMart orders:
Customers	1	customer
Orders	4	orders
Number of filing cabinets ordered in total	80	units
Selling price	$595
Direct materials	$180
Direct labor	$50
Enter a formula into each of the cells marked with a ? below
Review Problem: Activity-Based Costing
Perform the first stage allocations
	Assembling Units	Processing Orders	Supporting Customers	Other	Total
Manufacturing overhead	?	?	?	?	?
Selling and administrative overhead	?	?	?	?	?
Total cost	?	?	?	?	?
Compute the activity rates
Activity Cost Pools	Total Cost	Total Activity		Activity Rate
Assembling units	?	?	units	?	per unit
Processing orders	?	?	orders	?	per order
Supporting customers	?	?	customers	?	per customer
Compute the overhead cost attributable to the OfficeMart orders
Activity Cost Pools	Activity Rate		Activity		ABC Cost
Assembling units	?	per unit	?	units	?
Processing orders	?	per order	?	orders	?
Supporting customers	?	per customer	?	customer	?
Determine the customer margin for the OfficeMart orders under Activity-Based Costing
Sales		?
Costs:
Direct materials	?
Direct labor	?
Unit-related overhead	?
Order-related overhead	?
Customer-related overhead	?	?
Customer margin		?
Determine the product margin for the OfficeMart orders under a traditional cost system
Manufacturing overhead	?
Total activity	?	units
Manufacturing overhead per unit	?	per unit
Sales		?
Costs:
Direct materials	?
Direct labor	?
Manufacturing overhead	?	?
Traditional costing product margin		?

FORMULAS ARE NEEDED FOR QUESTION MARKS