For example, in cell B26 enter the formula - B4BB". 53 54 55 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 Manufacturing overhead $ 500,000 Total activity 1,000 units Manufacturing overhead per unit $ 500 per unit 56 Sales $ 47,600 58 Costs: 59 Direct materials $ 14,400 Direct labor 4,000 Manufacturing overhead 40,000 58,400 Traditional costing product margin $ (10,800) 57 60 61 62 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 $7640 and the traditional costing product margin should be $(21600), If you do not get these results, find the errors in your worksheet and correct them AutoSave 3 Chapter 7 Applying Excel Stu Home Insert Draw Page Layout Formulas Data Review View Tell me Arial 10 v AA E = = P 3 General ID: Paste B TU H. Merge & Center Al Chapter 7: Applying Excel C D G 4 Manufacturing overhead 5 Seling and administrative overhead $500.000 $300,000 Assembing Processing Supporting Unes Orders Customers Other s Manufacturing overhead 50% 35% 5% 10% 9 Seling and administrative overhead 10% 45% 25% 20% 10 Total acty 1,000 250 100 units orders customers 12 13 Office Martorders 14 Customers 1 outomer 15 Orders 4 orders 16 Number of filing cabinets ordered in total 80 units 17 Seling price $595 18 Direct materials $180 19 Direct labor $50 20 21 Enter a formule into each of the cel macked with a 7 below 22 Review Problem: Activity Based Costing 23 24 Perform the first stage allocations Assembling Processing Supporting 25 Units Orders Customers Other Total 26 Manufacturing overhead 27 Selling and administrative overhead 28 Total cost 29 30 Compute the activity rates 31 Activity Cost Pools Total Cost Total Activity Activity Rate 32 Assembling units ? perunt 33 Processing orders 7 orders 7 per order 34 Supporting customers 7 customers 7 per customer 35 36 Compute the overhead cost attributable to the Office Martorders 37 Active Cost Pools Activity Rate Activity ABC Cost 38 Assembling units 7 per unit 7 units 39 Processing orders ? por order 7 orders 40 Supporting customers 7 per customer ? customer 41 42 Determine the customer margin for the Office Martorders under Activity-Based Costing 43 Sales 44 Costs: 45 Direct materials 46 Direct labor 47 Untreated overhead 48 Onder-related overhead 49 Customer related overhead So Customer margin 51 Chapter 7 Form + 2 MacBook AutoSave Chapter 7 Home Insert Draw Page Layout Formulas Dala Review View Tell me Arial 10 > Wrap Text Paste B II A Merge & Center 1 fx Chapter 7: Applying Excel C D E F H Determine the product margin for the OmiceMart orders under a traditional cost system Manufacturing overhead Total activity 2 units Manufacturing overhead per unit 2. per un 2 Sales Costs Direct materials Direct labor Manufacturing overhead Traditional costing product margin ? ? ? + ar
