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B D E F G 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 $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% 7 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 12 13 OfficeMart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 1 customer 4 orders 80 units $595 S180 $50 20 Total 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 ? ? ? 27 Selling and administrative overhead ? ? ? 28 Total cost ? ? ? 29 30 Compute the activity rates 31 Activity Cost Pools Total Cost Total Activity 32 Assembling units ? units 33 Processing orders ? orders 34 Supporting customers ? ? customers 35 Other ? ? ? ? ? ? Activity Rate ? per unit 2 per order 2 per customer 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 ? ? 28 Total cost ? 2 2 ? ? 29 30 Compute the activity rates 31 Activity Cost Pools Total Cost Total Activity 32 Assembling units Activity Rate ? ? units ? per unit 33 Processing orders ? ? orders 2 per order 34 Supporting customers 2 ? customers ? per customer 35 36 Compute the overhead cost attributable to the OfficeMart orders 37 Activity Cost Pools Activity Rato Activity ABC Cost 38 Assembling units 2 per unit ? units ? 39 Processing orders ? per order 7 orders ? 40 Supporting customers 2 per customer ? customer ? 41 42 Determine the customer margin for the OfficeMart orders under Activity-Based Costing 43 Sales 2 44 Costs 45 Direct materials ? 46 Direct labor ? 47 Unit-related overhead 2 48 Order-related overhead ? 49 Customer-related overhead 2 ? 50 Customer margin 2 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 2 60 Direct labor ? 61 Manufacturing overhead ? ? 62 Traditional costing product margin 2 63 NHChapter 7 Form Filed in Chapter 7 Form Chapter 7 Formulas