Question
Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell B26 enter the formula = B4*B8.
Download the Applying Excel form and enter formulas in all cells that contain question marks.
For example, in cell B26 enter the formula "= B4*B8".
Note that the worksheet contains a section at the bottom titled "Determine the Product Margin Under a Traditional Cost System" that is not in the Review Problem. In this section, it is assumed that the traditional costing system allocates manufacturing overhead on the basis of the number of units produced. When completed, that part of the worksheet should contain the following results:
52
Determine the product margin for the OfficeMart orders under a traditional cost system
53
Manufacturing overhead
$
500,000
54
Total activity
1,000
units
55
Manufacturing overhead per unit
$
500
per unit
56
57
Sales
$
47,600
58
Costs:
59
Direct materials
$
14,400
60
Direct labor
4,000
61
Manufacturing overhead
40,000
58,400
62
Traditional costing product margin
$
(10,800)
63
After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the numbers in the Review Problem.
Check your worksheet by doubling the units ordered in cell B16 to 160. The customer margin under activity-based costing should now be $7,640 and the traditional costing product margin should be $(21,600). If you do not get these results, find the errors in your worksheet and correct them.
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