Please, answer all the questions on the screen shots.
qattachments_5dfc4f51392bc973ca04de16ffff3da5d7a3563e.xlsx Chapter 6: Applying Excel Data Manufacturing overhead Selling and administrative overhead Manufacturing overhead Selling and administrative overhead Total activity OfficeMart orders: Customers Orders Number of filing cabinets ordered in total Selling price Direct materials Direct labor $500,000 $300,000 Assembling Processing Supporting Units Orders Customers 50% 35% 5% 10% 45% 25% 1,000 250 100 units orders customers Other 10% 20% 1 customer 4 orders 80 units $595 $180 $50 Enter a formula into each of the cells marked with a ? below Review Problem: Activity-Based Costing Perform the first stage allocations Manufacturing overhead Selling and administrative overhead Total cost Compute the activity rates Activity Cost Pools Assembling units Processing orders Supporting customers Assembling Units ? ? ? Processing Supporting Orders Customers ? ? ? ? ? ? Total Cost ? ? ? Total Activity ? units ? orders ? customers Compute the overhead cost attributable to the OfficeMart orders Activity Cost Pools Activity Rate Assembling units ? per unit Processing orders ? per order Supporting customers ? per customer Determine the product margin for the OfficeMart orders under a traditional cost system Manufacturing overhead ? Total ? ? ? ? ? ? Activity Rate ? per unit ? per order ? per customer Activity ? units ? orders ? customer Determine the customer margin for the OfficeMart orders under Activity-Based Costing Sales ? Costs: Direct materials ? Direct labor ? Unit-related overhead ? Order-related overhead ? Customer-related overhead ? ? Customer margin ? Page 1 Other ABC Cost ? ? ? qattachments_5dfc4f51392bc973ca04de16ffff3da5d7a3563e.xlsx Total activity Manufacturing overhead per unit Sales Costs: Direct materials Direct labor Manufacturing overhead Traditional costing product margin ? units ? per unit ? ? ? ? Page 2 ? ? Assume that OfceMart plaoes orders more frequenlly. but everything else remains the same. On your worksheet increase the number of orders from 4 to 10. (Frlor to completlng thls requlrement, change all worksheet gures back to thelr orlglnal amounts.) A B I: D E F 1 Chapter T: Applylng Excel 2 3 Data 4 MBI'ILMLI'II'IQ overt-lead $500.06.) 5 Sellng md ad'rinistretlve overhead $300,001) 6 7 Assa'rblhg Pmmsslru Simon-thy Urils Orders Summers other 3 Manlectlng overhead 50% 35% 5% 10% 3 Fueling md mnls'tretlve overhead 10% 45% 25% 29% 1D TIMI aolivlty 1.000 250 100 11 \"1115 orders customers 12 13 OioeMart orders: 14 Custom 1 mslorner 15 Orders 10 ordels 16 Number OfIIIng Whats Warm In mun 80 units 1? Sellng moe $595 18 Dl'ect materials $180 19 ohm Mar 350 20 (a) What iathe customer margin under activity-beset: costing when the number ofordera increases to 10? [Enter a loss as a negatlve amount.) (b) What is the product margin under the traditional costing system when the number of orders increases to 10'? [Enter a loss as a negatlve amount.) to) Which of the following statements are true? (You may select more than one answer. Single cllck the box wlth a check mark for correct answers and double click to empty 1 box for the wrong answers.) 2| If a customer ordem more frequently, but orders the same total number of uniti over the coume ofa year, the wstomer margin under activity based costing will decrease. If a customer ordem more frequently, but orders the same total number of uniti over the coume ofa year, the product margin under a traditional costing system will decrease. Ile'i If a customer ordem more frequently, but orders the same total number of uniti over the coume ofa year, the wstomer margin under activity based costing will be unaffected. lei If a customer orders more frequently, but orders the same total number of units over the course ofa year, the product margin under a traditional mating system will be unaected. OloeMart has found an error in its data. The percentage of selling and administrative overhead attributable to processing orders should be changed to 25% from 45% and the percentage sttn'butsble to supporting customers should be changed to 45% from 25%. A B I; D E F 1 Chaplin 7: Applylng Excel 2 3 on. 4 Msnladtlng overhead $500,000 5 Sellng md ad'rinlstrnthre overhead 91500.0(!) 6 T Assenhg Processing Smporthg Urils Orders mourners Other B Manufactlling overhead 50% 35% 5% 10% 9 Sellng md ad'rinlstratl've overhead 10% 25% 45% 20% 10 'lbinl adh'vlty 1.000 250 100 11 mils orders custom 12 13 0mm adore: 14 Customers 1 msmrner 15 Orders 10 arms 16 Number uflng Guineas ordered in ml 80 units 17 Sellng pdoe $595 10- Dl'ac'trllaterlale $180 19 Diectldmr $50 20 (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 negatlve amount.) (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 s negatlve amount.) (c) Which of the following statements are true about what happens when the percentage of selling ard administrative overhead attributable to processing orders declines and the percentage of selling and administrative ovemead attributable to supporting customers increases by the same amount? (You may select more than one answer. Single click the box with a check mart: for correct answers and double click to empty the box for the wrong answers.) 3 Costs are shifted from the processing ordem mst pool to the supporting customers cost pool. g Costs will be shifted from customer who order more frequently to those who order less frequently. 2| The customer margins of those who order more frequemly will increase relative to the customer margins ofthose who order less frequently