Part 1

Part 2

Part 3

Can someone please help me with this as I have gotten this wrong 5 times!

53 oroduct 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 54 55 56 57 $ 47600 58 59 Sales Costs: Direct materials Direct labor Manufacturing overhead Traditional costing product margin 50 $ 14,400 4.000 40 000 58.400 $110.9003 61 02 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. G Other 10% 20% 3 Data 4 Manufacturing overhead $500,000 5 Selling and administrative overhead $300,000 6 Assembling Processing Supporting 7 Units Orders Customers 8 Manufacturing overhead 50% 35% 5% 9 Selling and administrative overhead 10% 45% 25% 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 S180 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 26 Manufacturing overhead ? 2 27 Selling and administrative overhead 2 ? 28 Total cost 2 29 Total 2 2 2 Other 2 2 2 2 ? 2. G 2 2 30 Compute the activity rates 31 Activity Cost Pools Total Cost Total Activity Activity Rate 32 Assembling units 2 ? units 2 per unit 33 Processing orders 2 ? orders 2 per order 34 Supporting customers ? ? customers ? per customer 35 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 2 orders 40 Supporting customers ? per customer 2 customer 2 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 2 49 Customer related overhead ? ? 50 Comer margin ? 51 2 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 12 per unit 56 57 Sales ? 58 Costs 59 Direct materials 2 60 Direct labor 2 61 Manufacturing overhead ? ? 62 Traditional costing product margin ? 63 64 30 B D A Chapter 7: Applying Excel E 1 2 3 Data 4 Manufacturing overhead Selling and administrative overhead $ 5 500,000 300,000 $ 6 ON 7 Processing Orders 35% Other 8 Supporting Customers 5% 10% 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 Assembling Units 50% 10% 1,000 units 25% 209 45% 250 100 orders customers 12 13 OfficeMart orders 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 1 customer 6 orders 80 units 595 $ 180 (a) What is the customer margin under activity-based costing when the number of orders increases to 6? (Enter a loss as a negative amount.) Customer margin under activity-based costing (b) What is the product margin under the traditional costing system when the number of orders increases to 6? (Enter a loss os a negative amount.) Product margin under the traditional conting system (c) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded os incorrect.) 2 2 If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease If a customer orders more frequently, but orders the same total number of units over the course of a year the product margin under a traditional costing system will decrease If a customer orders more frequently, but orders the same total number of units over the course of a year the customer margin under activity based costing will be unaffected. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under o traditional costing system will be unaffected 2 2 B D E Chapter 7: Applying Excel 1 2 3 Data 4 $ Manufacturing overhead Selling and administrative overhead 5 500,000 300,000 $ 6 OR 7 Other Assembling Units 50% 10% Processing Orders 35% 25% 250 Supporting Customers 5% 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 10% 45% 20% 100 1.000 units orders customers 12 + 1 customer 13 Office Mart orders 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 6 orders 80 units 595 $ $ 180 (a) Based on new number of orders in Requirement 2, what is the customer margin under activity-based costing when the data are corrected? (Enter a loss as a negative amount.) Customer an underactivity bowd costing (b) Based on new number of orders in Requirement 2. what is the product margin under the traditional costing system when the data are corrected? (Enter a loss as a negative amount.) Product margin under the traditional conting system (c) Which of the following statements are true about what happens when the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automaticolly graded os incorrect.) 2 When the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount costs are shifted from the processing orders cost pool to the supporting customers cost pool 2 When the percentage of selling and administrative overhead attributeble to processing orders decipes and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount costs will be shifted from customers who order more frequently to those who orderless frequently When the percentage of seling and administrative overhead attributable to processing orders declines and the percentage of celling and administrative overhead attributable to supporting customers increases by the same amount the customer margins of those who order more frequently will incrense relative to the customer margins of those who order less frequently 53 oroduct 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 54 55 56 57 $ 47600 58 59 Sales Costs: Direct materials Direct labor Manufacturing overhead Traditional costing product margin 50 $ 14,400 4.000 40 000 58.400 $110.9003 61 02 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. G Other 10% 20% 3 Data 4 Manufacturing overhead $500,000 5 Selling and administrative overhead $300,000 6 Assembling Processing Supporting 7 Units Orders Customers 8 Manufacturing overhead 50% 35% 5% 9 Selling and administrative overhead 10% 45% 25% 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 S180 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 26 Manufacturing overhead ? 2 27 Selling and administrative overhead 2 ? 28 Total cost 2 29 Total 2 2 2 Other 2 2 2 2 ? 2. G 2 2 30 Compute the activity rates 31 Activity Cost Pools Total Cost Total Activity Activity Rate 32 Assembling units 2 ? units 2 per unit 33 Processing orders 2 ? orders 2 per order 34 Supporting customers ? ? customers ? per customer 35 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 2 orders 40 Supporting customers ? per customer 2 customer 2 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 2 49 Customer related overhead ? ? 50 Comer margin ? 51 2 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 12 per unit 56 57 Sales ? 58 Costs 59 Direct materials 2 60 Direct labor 2 61 Manufacturing overhead ? ? 62 Traditional costing product margin ? 63 64 30 B D A Chapter 7: Applying Excel E 1 2 3 Data 4 Manufacturing overhead Selling and administrative overhead $ 5 500,000 300,000 $ 6 ON 7 Processing Orders 35% Other 8 Supporting Customers 5% 10% 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 Assembling Units 50% 10% 1,000 units 25% 209 45% 250 100 orders customers 12 13 OfficeMart orders 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 1 customer 6 orders 80 units 595 $ 180 (a) What is the customer margin under activity-based costing when the number of orders increases to 6? (Enter a loss as a negative amount.) Customer margin under activity-based costing (b) What is the product margin under the traditional costing system when the number of orders increases to 6? (Enter a loss os a negative amount.) Product margin under the traditional conting system (c) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded os incorrect.) 2 2 If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease If a customer orders more frequently, but orders the same total number of units over the course of a year the product margin under a traditional costing system will decrease If a customer orders more frequently, but orders the same total number of units over the course of a year the customer margin under activity based costing will be unaffected. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under o traditional costing system will be unaffected 2 2 B D E Chapter 7: Applying Excel 1 2 3 Data 4 $ Manufacturing overhead Selling and administrative overhead 5 500,000 300,000 $ 6 OR 7 Other Assembling Units 50% 10% Processing Orders 35% 25% 250 Supporting Customers 5% 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 10% 45% 20% 100 1.000 units orders customers 12 + 1 customer 13 Office Mart orders 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 6 orders 80 units 595 $ $ 180 (a) Based on new number of orders in Requirement 2, what is the customer margin under activity-based costing when the data are corrected? (Enter a loss as a negative amount.) Customer an underactivity bowd costing (b) Based on new number of orders in Requirement 2. what is the product margin under the traditional costing system when the data are corrected? (Enter a loss as a negative amount.) Product margin under the traditional conting system (c) Which of the following statements are true about what happens when the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automaticolly graded os incorrect.) 2 When the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount costs are shifted from the processing orders cost pool to the supporting customers cost pool 2 When the percentage of selling and administrative overhead attributeble to processing orders decipes and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount costs will be shifted from customers who order more frequently to those who orderless frequently When the percentage of seling and administrative overhead attributable to processing orders declines and the percentage of celling and administrative overhead attributable to supporting customers increases by the same amount the customer margins of those who order more frequently will incrense relative to the customer margins of those who order less frequently