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Fill in yellow highlight boxes. Not 100% sure previous highlighted boxes are correct. Information on left is given. Assignment Data 1. Perform the first stage
Fill in yellow highlight boxes. Not 100% sure previous highlighted boxes are correct. Information on left is given.
Assignment Data 1. Perform the first stage allocations Estimated manufacturing overhead Estimated selling and administrative overhead $550,000 $400,000 Manufacturing overhead Selling and administrative overhead Total cost Assembling Processing Supporting Units Orders Customers Other Total $ 236,500 $ 192,500 $ 5,500 $115,500 $ 550,000 48,000 164,000 132,000 56,000 400,000 $ 284,500 $ 356,500 $ 137,500 $171,500 S 950,000 Manufacturing overhead Selling and administrative overhead Total estimated activity Assembling Processing Supporting Units Orders Customers 43% 35% 1% 12% 41% 33% 4,100 1,525 975 units orders customers Other 21% 14% 2. Compute the activity rates Activity Cost Pools Assembling units Processing orders Supporting customers Total Cost $ 284,500 $ 356,500 $ 137,500 Total Activity 4.100 units 1,525 orders 975 customers Activity Rate $69 per unit $234 per order $141 per customer 3. Compute the overhead cost attributable to the OfficeMart orders Activity Cost Pools Activity Rate Assembling units $69 per unit Processing orders $234 per order Supporting customers $141 per customer OfficeMart Activity 1 customer 3 orders 80 units $600 $265 $85 Activity 80 units 3 orders 1 customer ABC Cost $5,551.22 $701.31 $141.03 OfficeMart orders: Customers Orders Number of filing cabinets ordered in total Average selling price per unit Direct materials per unit Direct labor per unit Total Company Activity 975 customers 1,525 orders 4,100 units $625 S280 $95 4. Determine the customer margin for the OfficeMart orders under Activity-Based Costing Sales $ 48,000 Costs: Direct materials $ 21,200 Direct labor 6,800 Assembling units $1,763 Processing orders $534 Supporting customers $10 Total costs 30,307 Customer margin { Determine the product margin for the OfficeAtari orders under a traditional cc Manufacturing overhead $ 950,000 Total activity 80 units Manufacturing overhead per unit $11.875 per unit $ 48,000 $ Sales Costs: Direct materials Direct labor Manufacturing overhead Total costs Traditional costing product margin 21,200 6,800 & Determine the per operating income for All sales under bor ABC and traditional costing systems 6a. Activity-based costing. Sales Costs: Direct materials Direct labor Assembling units Processing orders Supporting customers Other overhead Total costs Net operating income $ 75,000 should have same income 6. Traditional costing. Sales revenue Cost of goods sold: Direct materials Direct labor Manufacturing overhead Total cost of goods sold Gross margin Selling and administrative overheadStep by Step Solution
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