G H B D E F 1 Chapter 7: Applying Excel 2 3 Data 4 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 25 Units Orders Customers Other Total 26 Manufacturing overhead ? ? ? 2 ? 27 Selling and administrative overhead ? ? 2 7 28 Total cost 2 ? ? ? ? 29 30 Compute the activity rates 31 Activity Cost Pools Total Cost Total Activity Activity Rate 32 Assembling units ? ? units 2 per unit 33 Processing orders ? 7 orders ? per order 34 Supporting customers ? ? customers ? per customer 35 36 Compute the overhead cost attributable to the Office Mart orders 37 Activity Cost Pools Activity Rate Activity ABC Cost 38 Assembling units ? per unit ? units ? 39 Processing orders ? per order 7 orders ? 40 Supporting customers ? per customer ? customer ? 2 41 E G A B D F TU DITUCE TRIS TUU 19 Direct labor $50 20 21 Enter a formula into each of the cells marked 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 ? ? 2 ? ? 27 Selling and administrative overhead ? ? ? 7 7. 28 Total cost ? ? ? ? ? 29 30 Compute the activity rates 31 Activity Cost Pools Total Cost Total Activity Activity Rate 32 Assembling units ? ? units ? per unit 33 Processing orders ? ? orders ? per order 34 Supporting customers 7 ? customers ? per customer 35 36 Compute the overhead cost attributable to the Office Mart 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 Office Mart orders under Activity-Based Costing 43 Sales ? 44 Costs: 45 Direct materials ? 46 Direct labor 2 47 Unit-related overhead ? 48 Order-related overhead ? 49 Customer related overhead ? ? 50 Customer margin ? 51 52 Determine the product margin for the OfficeMart orders under a traditional cost system 53 Manufacturing overhead ? 54 Total activity 7 units 55 Manufacturing overhead per unit ? per unit 56 57 Sales ? 58 Costs: 59 Direct materials ? 60 Direct labor ? 61 Manufacturing overhead ? ? 62 Traditional costing product margin ? 63
