ENTER THE ANSWERS AS EXCEL FORMULAS

ENTER THE ANSWERS AS EXCEL FORMULAS

ENTER THE ANSWERS AS EXCEL FORMULAS

ENTER THE ANSWERS AS EXCEL FORMULAS

ENTER THE ANSWERS AS EXCEL FORMULAS

ENTER THE ANSWERS AS EXCEL FORMULAS

ENTER THE ANSWERS AS EXCEL FORMULAS

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.

Save your completed Applying Excel form to your computer and then upload it here by clicking Browse. Next, click Save. You will use this worksheet to answer the questions in Part 2.

B A D E F 1 Chapter 7: Applying Excel 2 Data $500,000 4 Manufacturing overhead Selling and administrative overhead $300,000 Processing Assembling Supporting Orders Units Customers Other 50% 35% 5% 10% Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 10% 45% 25% 20% 250 1,000 100 11 units orders customers 12 13 OfficeMart orders: 14 Customers 1 customer 15 Orders 4 orders 80 units 16 Number of filing cabinets ordered in total $595 $180 17 Selling price 18 Direct materials $50 19 Direct labor 20 Enter a formula into each of the cells marked with a ? below 21 22 Review Problem: Activity-Based Costing 23 24 Perform the first stage allocations Assembling Supporting Processing Orders Units Customers Other Total 25 26 Manufacturing overhead 2 ? ? ? 27 Selling and administrative overhead 28 Total cost ? ? 29 30 Compute the activity rates 31 Activity Cost Pools 32 Assembling units 33 Processing orders 34 Supporting customers Total Activity Total Cost Activity Rate ? per unit ? per order ? per customer ? units ? orders ? customers ? 35 36 Compute the overhead cost attributable to the OfficeMart orders 37 Activity Cost Pools 38 Assembling units 39 Processing orders 40 Supporting customers Activity Rate ? per unit ? per order ? per customer Activity ABC Cost ?units ? orders ? customer 41 Determine the customer margin for the OfficeMart orders under Activity-Based Costing 42 43 Sales ? ? 43 Sales 44 Costs: Direct materials 45 Direct labor 46 Unit-related overhead 47 ? Order-related overhead 48 ? ? 49 50 Customer margin Customer-related overhead ? 51 52 Determine the product margin for the OfficeMart orders under a traditional cost system 53 Manufacturing overhead 54 Total activity ? ? units ? per unit 55 Manufacturing overhead per unit 56 57 Sales 58 Costs: ? Direct materials 59 Direct labor 60 ? ? Manufacturing overhead 62 Traditional costing product margin 61 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85