Please answer the questions in the excel format. That is the way that my work needs to be done for this class.

Problems 40. Activity-Based Costing Versus Traditional Approach. Carson Company produces a regular computer monitor that sells for $175 and a premium computer monitor that sells for $300. Last year, total overhead costs of $3,675,000 were allocated based on direct labor hours. A total of 63,000 direct labor hours were required last year to build 36,000 regular monitors (1.75 hours per unit), and 42,000 direct labor hours were required to build 12,000 premium monitors (3.50 hours per unit). Total direct labor and direct materials costs for last year were as follows: Regular Monitor Premium Monitor Direct materials $1,908,000 $ 900,000 Direct labor $1,728,000 $1,200,000 The management of Carson Company would like to use activity-based costing to allocate overhead rather than one plantwide rate based on direct labor hours. The following estimates are for the activities and related cost drivers identified as having the greatest impact on overhead costs. Estimated Cost Driver Activity Total Estimated Activity Cost Driver Overhead Costs Regular Premium Purchase orders Number of purchase orders $1,200,000 400 600 Production setups Number of setups 1,125,000 120 30 Quality inspections Inspection hours 750,000 3,600 8,400 Packaging and shipping Number of units shipped $ 600,000 36,000 12,000 Total $3,675,000 1.000 150 12,000 48,000 Required: a. Calculate the direct materials cost per unit and direct labor cost per unit for each product. b. 1. Using the plantwide allocation method, calculate the predetermined overhead rate and determine the overhead cost per unit allocated to the regular and premium monitors. 2. Using the plantwide allocation method, calculate the product cost per unit for the regular and premium monitors. Round results to the nearest cent. C. 1. Using the activity-based costing allocation method, calculate the predetermined overhead rate for each activity. (Hint: Step 1 through step 3 in the activity-based costing process have already been done for you, this is step 4.) 2. Using the activity-based costing allocation method, allocate overhead to each product. (Hint: This is step 5 in the activity-based costing process.) Determine the overhead cost per unit. Round results to the nearest cent. 3. What is the product cost per unit for the regular and premium monitors? d. Calculate the per unit profit for each product using the plantwide approach and the activity-based costing approach e. How much did the profit per unit change for each product when moving from the plantwide approach to the activity-based costing approach? What caused this change? File Home Insert Draw Page Layout Formulas Data Review View PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit it's 12 A B C D E F G H - J K Premium Monitor PROBLEMS 40. Activity-Based Costing Versus Traditional Approach a. The cost per unit for direct materials is calculated as follows: Regular Monitor Total direct material costs (a) $1,908,000 Units produced (6) 36,000 units Direct material cost per unit (a) + (6) $53 per unit The cost per unit for direct labor is calculated as follows: Regular Monitor Total direct labor costs (c) Units produced (d) units Direct labor cost per unit (C) + (d) $48 per unit units per unit Premium Monitor units per unit 3 b. (1) The plantwide allocation used by the company is based on The rate is calculated as Estimated over head cost Estimated activity in allocation base hours per direct labor hour Calculate the overhead cost per unit for each product here: 4 5 -6 7 Premium Monitor 39 10 11 2 13 (2) Per unit product costs are calculated as follows: Regular Monitor Direct materials (from parta) Direct labor (from part a) Overhead 61.25 Total product cost per unit per unit per unit 45 47 -49 50 BE 24 P 40 P 40 (continued) P 40 (continued2) PROBLEMS (continued) 40. Activity Based Costing Versus Traditional Approach (continued) c. (1) Predetermined overhead rates are calculated for each activity as follows: 3 0 1 Estimated Overhead Costs (b) Estimated Cost Driver Activity orders 2 Activity Purchase orders Production setups Quality inspections Packaging and shipping Total 3 4 (a) = (b) Predetermined Overhead Rate $1,200.00 per order per setup per inspect. hour per unit shipped Cost Driver Number of purchase orders Number of setups Inspection hours Number of units shipped setups hours units 5 6 8 (2) Overhead costs are allocated below: 20 Regular Monitor Cost Driver Overhead Activity Allocated Premium Montitor Cost Driver Overhead Activity Allocated 2 23 per order 25 26 Predetermined Overhead Activity Rate Purchase orders Production setups per setup Quality inspections per inspection Packaging and shipping per unit shipped Total overhead costs allocated Total companywide overhead costs Overhead cost per unit for each product (rounded)** PB 30 557 PROBLEMS (continued) 40. Activity-Based Costing Versus Traditional Approach (continued) c. (3) Per unit product costs are: Regular Monitor Direct materials (from part a) Direct labor (from parta) Overhead (from parte) Total product cost per unit Premium Monitor Premium Monitor 4 d Traditional Costing (Direct labor hours as the allocation base) Regular Monitor Direct materials Direct labor Overhead Total product cost per unit (a) $162 25 Sales price (b) Profit-6-) Activity-Based Costing (Several different allocation bases) Regular Monitor Direct materials Direct labor Overhead Total product cost per unit (c) $158.00 Sales price (d) Profit (loss)-(d)-(e) 6 8 9 Premium Monitor 81 B2 33 Enter your answer for parte here: 35 36 37 38 39 40 41 42 43 45 46 BE 24 P40 DA continued conti Problems 40. Activity-Based Costing Versus Traditional Approach. Carson Company produces a regular computer monitor that sells for $175 and a premium computer monitor that sells for $300. Last year, total overhead costs of $3,675,000 were allocated based on direct labor hours. A total of 63,000 direct labor hours were required last year to build 36,000 regular monitors (1.75 hours per unit), and 42,000 direct labor hours were required to build 12,000 premium monitors (3.50 hours per unit). Total direct labor and direct materials costs for last year were as follows: Regular Monitor Premium Monitor Direct materials $1,908,000 $ 900,000 Direct labor $1,728,000 $1,200,000 The management of Carson Company would like to use activity-based costing to allocate overhead rather than one plantwide rate based on direct labor hours. The following estimates are for the activities and related cost drivers identified as having the greatest impact on overhead costs. Estimated Cost Driver Activity Total Estimated Activity Cost Driver Overhead Costs Regular Premium Purchase orders Number of purchase orders $1,200,000 400 600 Production setups Number of setups 1,125,000 120 30 Quality inspections Inspection hours 750,000 3,600 8,400 Packaging and shipping Number of units shipped $ 600,000 36,000 12,000 Total $3,675,000 1.000 150 12,000 48,000 Required: a. Calculate the direct materials cost per unit and direct labor cost per unit for each product. b. 1. Using the plantwide allocation method, calculate the predetermined overhead rate and determine the overhead cost per unit allocated to the regular and premium monitors. 2. Using the plantwide allocation method, calculate the product cost per unit for the regular and premium monitors. Round results to the nearest cent. C. 1. Using the activity-based costing allocation method, calculate the predetermined overhead rate for each activity. (Hint: Step 1 through step 3 in the activity-based costing process have already been done for you, this is step 4.) 2. Using the activity-based costing allocation method, allocate overhead to each product. (Hint: This is step 5 in the activity-based costing process.) Determine the overhead cost per unit. Round results to the nearest cent. 3. What is the product cost per unit for the regular and premium monitors? d. Calculate the per unit profit for each product using the plantwide approach and the activity-based costing approach e. How much did the profit per unit change for each product when moving from the plantwide approach to the activity-based costing approach? What caused this change? File Home Insert Draw Page Layout Formulas Data Review View PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit it's 12 A B C D E F G H - J K Premium Monitor PROBLEMS 40. Activity-Based Costing Versus Traditional Approach a. The cost per unit for direct materials is calculated as follows: Regular Monitor Total direct material costs (a) $1,908,000 Units produced (6) 36,000 units Direct material cost per unit (a) + (6) $53 per unit The cost per unit for direct labor is calculated as follows: Regular Monitor Total direct labor costs (c) Units produced (d) units Direct labor cost per unit (C) + (d) $48 per unit units per unit Premium Monitor units per unit 3 b. (1) The plantwide allocation used by the company is based on The rate is calculated as Estimated over head cost Estimated activity in allocation base hours per direct labor hour Calculate the overhead cost per unit for each product here: 4 5 -6 7 Premium Monitor 39 10 11 2 13 (2) Per unit product costs are calculated as follows: Regular Monitor Direct materials (from parta) Direct labor (from part a) Overhead 61.25 Total product cost per unit per unit per unit 45 47 -49 50 BE 24 P 40 P 40 (continued) P 40 (continued2) PROBLEMS (continued) 40. Activity Based Costing Versus Traditional Approach (continued) c. (1) Predetermined overhead rates are calculated for each activity as follows: 3 0 1 Estimated Overhead Costs (b) Estimated Cost Driver Activity orders 2 Activity Purchase orders Production setups Quality inspections Packaging and shipping Total 3 4 (a) = (b) Predetermined Overhead Rate $1,200.00 per order per setup per inspect. hour per unit shipped Cost Driver Number of purchase orders Number of setups Inspection hours Number of units shipped setups hours units 5 6 8 (2) Overhead costs are allocated below: 20 Regular Monitor Cost Driver Overhead Activity Allocated Premium Montitor Cost Driver Overhead Activity Allocated 2 23 per order 25 26 Predetermined Overhead Activity Rate Purchase orders Production setups per setup Quality inspections per inspection Packaging and shipping per unit shipped Total overhead costs allocated Total companywide overhead costs Overhead cost per unit for each product (rounded)** PB 30 557 PROBLEMS (continued) 40. Activity-Based Costing Versus Traditional Approach (continued) c. (3) Per unit product costs are: Regular Monitor Direct materials (from part a) Direct labor (from parta) Overhead (from parte) Total product cost per unit Premium Monitor Premium Monitor 4 d Traditional Costing (Direct labor hours as the allocation base) Regular Monitor Direct materials Direct labor Overhead Total product cost per unit (a) $162 25 Sales price (b) Profit-6-) Activity-Based Costing (Several different allocation bases) Regular Monitor Direct materials Direct labor Overhead Total product cost per unit (c) $158.00 Sales price (d) Profit (loss)-(d)-(e) 6 8 9 Premium Monitor 81 B2 33 Enter your answer for parte here: 35 36 37 38 39 40 41 42 43 45 46 BE 24 P40 DA continued conti