Please see the below information. This information is used to fill out the attached excel spreadsheet. I am having troubles completing the assignment. The spreadsheet will notify you if an answer is incorrect.

LO.4 & LO.5 (ABC; pricing) Strickland Co. currently charges manufacturing over- head costs to products using machine hours. However, company management believes that the use of ABC would provide more realistic cost estimates and, in turn, give the company an edge in pricing over its competitors. Stricklands accountant and produc- tion manager have provided the following budgeted information for 2014, given a budgeted capacity of 1,000,000 machine hours: Type of Manufacturing Cost Electric power Work cells Material handling Quality control inspections Machine setups Total budgeted overhead costs Type of Manufacturing Cost Electric power Work cells Material handling Quality control inspections Machine setups Cost Amount $500,000 3,000,000 1,000,000 1,000,000 350,000 $5,850,000 Activity Driver 200,000 kilowatt hours 300,000 square feet 200,000 material moves 50,000 inspections 25,000 setups PRODUCTS ABC A national construction company approached Pete Lang, the VP of marketing, about a bid for 2,500 doors. Lang asked the cost accountant to prepare a cost estimate for pro- ducing the 2,500 doors; he received the following data: Direct material cost Direct labor cost Machine hours Direct labor hours Electric powerkilowatt hours Work cellssquare feet Number of material handling moves Number of quality control inspections Number of setups $ 50,000 $150,000 5,000 2,500 500 1,000 20 15 6 Source: Adapted from Nabil Hassa, Herbert E. Brown, and Paul M. Saunders, Management Accounting Case Study: Beaver Window Inc., Management Accounting Campus Report (Fall 1990)

Problem 4-48 Name: Katie A. VanLaningham Insert your answers in the gray-shaded cells of columns B, E and G. If an answer is incorrect, the word "wrong" will appear. a. Predetermined overhead rate: Budgeted overhead Budgeted machine hours Predetermined overhead rate per machine hour b. Manufacturing cost per door: Direct material Direct labor Applied overhead Total cost Divided by the number of doors Cost per door c. $ 5,850,000 5,000 $ 1,170.00 $ $ $ 50,000 150,000 29,250 229,250 2,340 97.97 Manufacturing cost per door using ABC: Predetermined rate per activity per unit of cost driver: Electric power: Budgeted electric power cost Budgeted kilowatt hours Predetermined overhead rate per kilowatt hour $ Work cells: Budgeted work cell cost Budgeted square feet Predetermined overhead rate per square foot $ 3,000,000 300,000 $ 10.00 Material handling: Budgeted material handling cost Budgeted material moves Predetermined overhead rate per move $ 1,000,000 200,000 $ 5.00 Quality control inspections: Budgeted inspection cost Budgeted number of inspections Predetermined overhead rate per inspection $ 1,000,000 50,000 $ 20.00 $ 500,000 200,000 2.50 Wrong Wrong Product runs: Budgeted machine setup cost Budgeted production runs Predetermined overhead rate per setup Cost per door: Direct material Direct labor Applied overhead Electric power Work cells Materials handling Quality control Setups Total cost Number of doors Cost per door $ $ $ $ 500 1,000 20 15 6 350,000 25,000 14.00 50,000 150,000 Wrong Wrong Wrong Wrong Wrong $ $ 1,541 201,541 2,500 80.62 d. The activity-based costing method allocates the cost pools of manufacturing overhead to various cost drivers and then to products based on the amount or number or other bases that each product consumes in various cost drivers. Assume that Strickland's policy is to add 40% to manufacturing cost as gross profit to cover costs such as administrative expenses, selling expenses, financial expenses, and research and development expenses and the remainder will be profit. In determining the selling price of the door under both methods add 40% of total manufacturing costs: Unit costs Plus gross profit at 40% Selling price (Key answer here) Present System $ 80.62 Wrong ABC System $ 80.62 Wrong e. (Key answer here)