Excel Simulation #6--Chapter #7 Saved Help Save & Exit Submit Required Information Follow the instructions to create your own worksheet version of the Review Problem in the text on pages 312314. Part 1 of 2 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". Skipped eBook Print References 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. Chapter 7 Applying_Excel_Student Home Page Layout Formulas Data Review View Insert X Cut Arial 10 A- A Wrap Text General Copy Paste B I U - Merge & Center $ % .D .00 .00 ..0 Format Conditional F Formatting a A1 fx Chapter 7: Applying Excel 7 1 Chapter 7: Applvina Excel z 3 Data 4 Manufacturing overhead 5500,000 5 Selling and administrative overhead $300,000 6 Assembivig Processing Supporting 7 Unile Orders Customers Other 8 Manufacturing overhead 505 35% 5% 10% 9 Selling and administrative overhead 10% 45% 25% 20% 10 Total activity 1,000 250 100 11 unite orders customers 12 13 OfficeMart orders: 14 Customers 1 customer 15 Orders 4 orders 16 Number of filing cabinets ordered in total 80 units 17 Selling price 5595 18 Direct materials S180 19 Direct labor $50 20 21 Enter a formule into each of the cells marked with a ? below 22 Review Problem: Activity-Based Costing 23 24 Perform the first stage allocations Assembing Processing Supporting 25 Units Orders Customers Other Total 26 Manufacturing overhead 7 7 7 ? ? 27 Selling and administrative overhead 7 7 ? 28 Total cost 7 ? ? ? 29 30 Compute the activity rates 31 Activity Cost Poals Total Cost Total Activity Activity Rate 32 Assembling units ? ? units 7 per un 33 Processing orders 2 7 orders 7 per order 34 Supporting customers 2 ? customers ? per customer 35 36 Compute the overhead cost attributable to the OfficeMart orders 37 Activity Cost Pools Achwy Rate Activity ABC Cast 38 Assembling units ? per unit ? units ? 39 Processing orders ? per order ? orders ? 40 Supporting customers ? per customer ? customer ? 41 42 Determine the customer margin for the OfficeMart orders under Activity-Based Costing 43 Sales ? 44 Costs: 45 Direct materials 2 46 Direct labor 2 47 Unit-related overhead ? 48 Order-related overhead ? 49 Customer related overhead 2 ? So Customer margin Si S2 Determine the product margin for the Office Mart orders under a traditional cost system 53 Manufacturing overhead 2 54 Total activity ? units SS Manufacturing overhead per unit 2 per unit SG S7 Sales 2 58 Costs: 59 Direct materials ? 60 Direct labor ? 61 Manufacturing overhead 2 2 62 Traditional costing product margin ? 63 64 65 66 67 68 69 70 71 72 73 Chapter 7 Form + ? Check my work TUUV LITE I ISLI LILLIUIIS LU Lieate your UWIT WUIKSeel veI SIVIT UI LIIe Review riunie 1 Lie LeAL UIT payes J12-14. 2 2. Assume that OfficeMart places orders more frequently, but everything else remains the same. On your worksheet increase the number of orders from 4 to 19. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) Part 2 of 2 B E A Chapter 7: Applying Excel 1 20 points 2 3 4 Data Manufacturing overhead Selling and administrative overhead S 500.000 300.000 5 S eBook 6 7 Other Processing Orders 35% Print 8 Manufacturing overhead Selling and administrative overhead Total activity Assembling Units 50% 10% 1,000 units Supporting Customers 5% 25% 100 9 10% 20% 45% References 250 10 11 orders Customers 12 13 OfficeMart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 1 customer 19 orders 80 units S 595 180 S S 50 2 Required information (a) What is the customer margin under activity-based costing when the number of orders increases to 19? (Enter a loss as a negative amount.) art 2 of 2 Customer margin under activity-based costing ints eBook (b) What is the product margin under the traditional costing system when the number of orders increases to 19? (Enter a loss as a negative amount.) Print Product margin under the traditional costing system Eeferences (C) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will decrease. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will be unaffected. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected. aw