File Home Insert Page Layout Formulas Data Review View Help Show | New Window BD Arrange All Freeze Panes Mas Normal Page Break Preview Zoom 100% Zoom to Selection Switch Windows Workbook Views Zoom Window Mac F31 X G H AA B D E F 1 Activity-Based Costing, Lean Operations, and the costs of Quality 2 Compute activity rates and apply to jobs 3 Fuller Company uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation 4 bases are as follows: 5 Total Budgeted Manufacturing 6 Activity Overhead Cost Allocation Base 7 Materials handling $12,000 Number of parts 8 Machine setup 3,400 Number of setups 9 Insertion of parts 48,000 Number of parts 10 Finishing 80,000 Finishing direct labor hours 11 Total $143,400 12 Fuller Company expects to produce 1,000 chrome wheels during the year. The wheels 13 are expected to use: Parts Setups Finishing Hours 14 Consumed 15 3,000 10 2,000 16 Finishing Parts Setups Hours 17 Used Required Consumed INSTRUCTIONS ENTERANSWERS + Ready Post O a Consumed 15 3,000 10 2,000 16 Finishing Parts Setups Hours 17 Used Required Consumed 18 Job 420 200 2. 130 19 Job 510 425 4 350 20 21 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. 22 If you copy/paste from the Instruction tab you will be marked wrong. 23 24 Requirements 25 1 Compute the cost allocation rate for each activity. 26 2 Compute the manufacturing overhead cost that should be assigned to Job 420. 27 3 Compute the manufacturing overhead cost that should be assigned to Job 510. 28 INSTRUCTIONS ENTERANSWERS Ready CL NI O . New QC a mic Some account ser available until you Macros Arrange Show Normal Page Break Preview 100 Zoom 100% Zoom to Selection Sw Windo Freeze Panes LE Macros Workbook Views Zoom Window B7 fx H B D 5 Computation of Cost Allocation Rates Activity Cost 6 Activity Allocation Rate 7 Materials handling per part 8 Machine setup per setup 9 Insertion of parts per part 10 Finishing per hour 11 12 2. Compute the manufacturing overhead cost that should be assigned to Job 42 (Always use cell references and formulas where appropriate to receive full credit. If 13 copy/paste from the Instruction tab you will be marked wrong.) 14 15 Job 420 16 Manufacturing overhead allocation Activity MOH assigned 18 Materials handling 19 Machine setup 20 Insertion of parts 21 Finishing 22 Total 23 24 3. Compute the manufacturing overhead cost that should be assigned to Job 510. (Always use cell references and formulas where appropriate to receive full credit. If you 25 copy/paste from the Instruction tab you will be marked wrong.) 26 27 Job 510 28 Manufacturing overhead allocation 29 Activity MOH assigned INSTRUCTIONS ENTERANSWERS 17 JU IVULLlui lurus 19 Machine setup 20 Insertion of parts 21 Finishing 22 Total 23 24 3. Compute the manufacturing overhead cost that should be assigned to Jol (Always use cell references and formulas where appropriate to receive full credi- 25 copy/paste from the Instruction tab you will be marked wrong.) 26 + 27 Job 510 28 Manufacturing overhead allocation 29 Activity MOH assigned 30 Materials handling 31 Machine setup 32 Insertion of parts 33 Finishing 34 Total 35
