Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer the questions whats on the excel sheet and on the screenshots. qattachments_79e4b062ce2a004e5c16d0007e2187570d902463.xlsx Chapter 6: Applying Excel Data Manufacturing overhead Selling and administrative overhead

image text in transcribedimage text in transcribedimage text in transcribed

Please answer the questions whats on the excel sheet and on the screenshots.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
qattachments_79e4b062ce2a004e5c16d0007e2187570d902463.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_79e4b062ce2a004e5c16d0007e2187570d902463.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 places orders more frequently. but everything else remains the same. On your worksheet increase the number of orders from 4 to 10. (Prior to completing requirement, change all worksheet flgures back to their original amounts.) A B I: D E F 1 Chapter 1': Applying Excel 2 3 Date 4 Manleotlng oved'Iead $500,000 5 Seilng md aministrethre overhead 53110.0(!) 6 7 Asserrblhg Processirq Sipporthg Urils Orders Dusuxners Other B Manleotlng oved'Iead 50% 35% 5% 10% B Seilng md aministrethre overhead 10% 45% 25% 20% 1D 'lbil aoh'viiy 1.00:: 250 100 11 mils orders customers 12 13 OioeMart orders: 14 Customers 1 warmer 15 Orders 10 orders 16 Number oflng omineis ordered in mail 80 units 17 Seilng price $595 18 Dl'ect materials $180 19 Dl'ect Mar 550 20 (a) What is the customer margin under activity-based costing when the number of orders increases to 10? {Enter a loss as a negative amount.) (b) What isthe product margin under the traditional coating system when the number of orders increases to 10'? [Enter a loss as a negative amount.) (c) Which of the following statements are true? (You may select more than one answer. Single click the box with a check mark tor correct answers and double click to empty the box for the wrong answers.) 2| If a customer orders more frequently, but orders the same total number of units over the (nurse ofa year, the customer margin under activity based (nsting will decrease. If a customer orders more frequently, but orders the same total number of units over the (nurse ofa year, the product margin under a traditional misting system will decrease. l2||_'| If a customer orders more frequently, but orders the same total number of units over the (nurse ofa year, the wmomer margin under activity based (nsting will be unaffected. If a customer orders more frequently, but orders the same total number of units over the (nurse ofa year, the product margin under a traditional misting system will be unaecled. (2| 3. O'lceMart 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 attributable to supporting wstomers should be changed to 45% 'om 25%. 3. OloeMart has found an error in its data. The percentage of selling and administrative overhead attributable to processing orders should be ohanged to 25% from 45% and the percentage attn'butable to supporting customers should be changed to 45% from 25%. A B I: D E F 1 Chapter 7: Applylng Excel 2 3 Data 4 Manlactrng overt-rand 35011.0\") 5 Sellng md ad'rlnlstrathre overhead $300,091) 8 7 Asserrhg Prooesslru Smoorthg Urns Orders Dusuxrrers other B Manractrng overhead 50% 35% 5% 10% 9 Sellng md ad'rlnls'tratlve ove'read 10% 25% 45% 20% 1D mun aoltvlty 1.000 25) 100 11 mils orders wstomsrs 12 13 ommm orders: 14 Customers 1 msitmrer 15 Orders 10 orders 16 Numberoflng orinels ordered in ml 50 units 17 Sellng more $595 18 Ell'actrrratarlls $181.] 19 Dhctlmor $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 a negatlve amount.) to) Which ofthe 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 overhead attributable to supporting customers increases by the same amount? (You may select more than one answer. Slngle cllck the box with a check mart for conect answers and double cllck to empty the box for the wrong answers.) g Costs are shifted from the processing orders cost pool tic the supporting customers cost pool. g Costs will be shifted from customer who order more frequently to those who order less frequently. 2| The wstiomer margins 01 those who order more frequently will increase relative to the customer margins ofthose who order less frequently

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting with International Financial Reporting Standards

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

4th edition

1119504309, 1-119-50340-8, 9781119503408 , 978-1119504306

More Books

Students also viewed these Accounting questions