Data Manufacturing overhead Selling and administrative overhead $500,000 $300,000 Manufacturing overhead Selling and administrative overhead Total activity Assembling Units 50% 10% 1,000 units Processing Orders 35% 45% 250 orders Supporting Customers 5% 25% 100 customers Other 10% 20% Office Mart orders: Customers Orders Number of filing cabinets ordered in total Selling price Direct materials Direct labor 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 Supporting Customers Other Total Manufacturing overhead Selling and administrative overhead Total cost Assembling Units ? ? ? Processing Orders ? ? ? ? ? ? ? ? ? Total Cost Compute the activity rates Activity Cost Pools Assembling units Processing orders Supporting customers Total Activity ? units ? orders ? customers Activity Rate ? per unit ? per order ? per customer ? ABC Cost Compute the overhead cost attributable to the Office Mart orders Activity Cost Pools Activity Rate Assembling units ? per unit Processing orders ? per order Supporting customers ? per customer Activity ? units ? orders ? customer Determine the customer margin for the Office Mart orders under Activity-Based Costing Sales Costs: ! Direct materials Direct labor I Unit-related overhead Order-related overhead i Customer-related overhead Customer margin Determine the product margin for the Office Mart 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