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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
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 Prob In this section, it is assumed that the traditional costing system allocates manufacturing overhead on the basis of the number of units produced. When comple 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: ices 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. Prev. 1 2 of 7 Next > aw Q Search insert delete prt sc home end F10 F12 F9G H 3 Data Manufacturing overhead $500,000 5 Selling and administrative overhead $300,000 6 Assembling Processing Supporting 7 Units Orders Customers Other 8 Manufacturing overhead 50% 35% 5% 10% 9 Selling and administrative overhead 10% 45% 25% 20% 10 Total activity 1,000 250 100 11 units 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 $595 18 Direct materials $180 19 Direct labor $50 20 21 Enter a formula into each of the cells marked with a ? below 22 Review Problem: Activity-Based Costing 23 24 Perform the first stage allocations Assembling Processing Supporting Units Orders Customers Other Total 25 ? 26 Manufacturing overhead 27 Selling and administrative overhead ? ? 28 Total cost 29 30 Compute the activity rates Chapter 7 Form + Ready Accessibility: Good to go 44.F Q Search INLUCZ CloudyF 31 Activity Cost Pools G Total Cost Total Activity Activity Rate 32 Assembling units ? units ? per unit 33 Processing orders ? orders ? per order 34 Supporting customers ? customers ? per customer 36 Compute the overhead cost attributable to the OfficeMart orders 37 Activity Cost Pools Activity Rate Activity ABC Cost 38 Assembling units ? per unit ? units ? 39 Processing orders ? per order ? orders 2 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 46 Direct labor 47 Unit-related overhead 48 Order-related overhead 49 Customer-related overhead 50 Customer margin 2 51 52 Determine the product margin for the OfficeMart orders under a traditional cost system 53 Manufacturing overhead ? 54 Total activity ? units 55 Manufacturing overhead per unit ? per unit 56 57 Sales 58 Costs: 59 Direct materials 60 Direct labor 61 Manufacturing overhead Chapter 7 Form +D E F 1 Manufacturing overhead ? 2 Traditional costing product margin 13 14 56 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88
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