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enter formulas in all cells that contain question marks. For example, in cell B26 enter the formula-B4B8. Note that the worksheet cntains a section at
enter formulas in all cells that contain question marks.
For example, in cell B26 enter the formula-B4"B8". Note that the worksheet cntains 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 53 54 55 Determine the product margin for the OfficeMart orders under a traditional cost system Manufacturing overhead Total activity Manufacturing overhead per unit 500,000 1,000 units 1 $500 per u nit $ 47,600 57 Sales 58 Costs 59 Direct materials Direct labor Manufacturing overhead 9 $ 14,400 4,00 40,00058,400 0 61 0 2 62 Traditional costing product margin $(10,800) 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. Data Manufacturing overhead Selling and administrative overhead $500,000 $300,000 Assembling Processing Supporting Units Orders Customers Other Manufacturing overhead Selling and administrative overhead Total activity 50% 10% 1,000 units 35% 45% 250 orders 10% 20% 5% 25% 100 customers OfficeMart orders Customers Orders Number of filing cabinets ordered in total Selling price Direct materials Direct labor 1 customer 4 orders 80 units S595 S180 $50 Enter a formula into each of the cells marked with a? below Review Problem: Activity-Based Costing Perform the first stage allocations Assembling Processing Supporting Units Orders CustomersOther Total Manufacturing overhead Selling and administrative overhead Total cost Compute the activity rates Activity Cost Pools Assembling units Processing orders Supporting customers Total Cost Total Activity Activity Rate units ? orders ? customers ?per unit ? per order ? per customer Compute the overhead cost attributable to the officeMart orders Activity Cost Pools Assembling units Processing orders Supporting customers Activity Rate Activity ABC Cost ? per unit ? per order ? per customer ? units ? orders ? customer Determine the customer margin for the OfficeMart orders under Activity-Based Costing Sales Costs 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 Manufacturing overhead per unit ? per unit Sales Costs: Direct materials Direct labor Manufacturing overhead 2 Traditional costing product marginStep by Step Solution
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