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Double checking my steps to make sure I am doing it correct, please show cell formulas. Thank you Total estimated overhead cost: Labor-related -allocated using
Double checking my steps to make sure I am doing it correct, please show cell formulas. Thank you
Total estimated overhead cost: Labor-related -allocated using direct labor hours (DLHS) Machine set-ups-allocated using # of setups) Production orders -allocated using # of orders) General factory-allocated using # of machine hours (MH) Total Cost $ 80,000 150,000 70,000 250,000 $ 550,000 Total Annual production and sales in units Direct materials per unit Direct labor hours per unit Direct labor rate per hour Expected # of Machine Setups Expected # of Production Orders Expected # of Machine Hours Deluxe 2,000 $25 5 $12 3,000 100 12,000 Tourist 10,000 $17 4 $12 2,000 300 28,000 5,000 400 40,000 Enter a formula or cell reference in each of the cells below marked with a ?. There should not be any hard-coded #s in any of these cells. 1) Product Costing using the Traditional Overhead Allocation Method: Compute the predetermined overhead rate Estimated total manufacturing overhead (a) Estimated total amount of the allocation base (b) Traditional costing predetermined overhead rate (a)/(b) ? ? ? DLHS per DLH Deluxe DLHS Tourist DLHS Compute the manufacturing overhead applied: Direct labor hours per unit(a) Predetermined overhead rate (b) Manufacturing overhead applied per unit (a) x (b) ? ? ? per DLH ? ? ? per DLH ? Compute traditional unit product costs Direct materials Direct labor Manufacturing overhead applied Total traditional unit product cost Deluxe ? ? ? ? Tourist ? ? ? ? 2) Product Costing using Activity-Based Costing: Compute activity rates: Estimated Overhead Cost Activities: Labor-related Machine set-ups Production orders General factory Total Expected Activity ? DLHS ? setups ? orders ? MHS ? ? ? Activity Rate ? per DLH ? per setup ? per order ? per MH Compute the expected ABC overhead cost per unit: Deluxe Expected Activity rate Activity Amount ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Activities: Labor-related Machine set-ups Production orders General factory Total overhead cost assigned (a) Number of units to be produced (b) ABC overhead cost per unit (a) / (b) Tourist Expected Activity Amount ? ? ? ? ? ? ? ? ? ? ? ... Deluxe Compute ABC unit product costs Direct materials Direct labor Manufacturing overhead applied Total ABC unit product cost ? C....... Tourist ? ? ? ? 3) Summary and Conclusion: Total traditional unit product cost Total ABC unit product cost Deluxe ? ? Tourist
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