Required Information Chapter 4: Applying Excel Step 1: Download the Applying Excel form located on the left-hand side, under files. If you have trouble, the file is also located in D2L under Course Administration. Step 2: Then enter formulas in all cells that contain question marks. For example, in cell C17 enter the formula "=B8%B10". Step 3: Check your worksheet by reducing the direct labor-hours for the Deluxe model in cell B10 from 5 to 2. The Deluxe model's unit product cost under traditional costing should now be $74.00 and the ABC unit product cost should be $143.89. If you do not get these results, fmd the errors in your worksheet and correct them. Step 4: Proceed to the requirements below only after completing your worksheet as it will be used to answer the following questions. Chapter 4: Applying Excel: Exercise Requirement 1: (a). Which of the following statements are true concerning the predetermined overhead rate when the direct labor-hour requirement for the Deluxe model dropped from 5 hours to 2 hours? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as Incorrect.) 7 The predetermined overhead rate decreases because the total estimated overhead cost Increased. 2 The predetermined overhead rate decreased because the total direct labor-hours dropped. 2 The predetermined overhead rate Increased because the total direct labor-hours dropped. The predetermined overhead rate Increased because the total estimated overhead cost Increased. (b). Which of the following statements are true concerning the unit product costs for the Tourist model when the direct labor-hour requirement for the Deluxe model drops from 5 hours to 2 hours? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as Incorrect.) X 2 Economically, the fact that the Deluxe model's direct labor-hour requirement changed should have little or no impact on the cost of the Tourist model x 2 The ABC unit product cost of the Tourist model increases when the Deluxe model's direct labor-hour requirement decreases, but by not by as much as the traditional unit product cost. 2 The traditional unit product cost of the Tourist model increases when the Deluxe model's direct labor-hour requirement decreases. Requirement 2: Change the direct labor-hour requirement for the Deluxe model back to 5 hours in cell B10. Assume that the production orders change so that the Deluxe model will have 200 orders in cell C19 and the Tourist model will have 300 orders in cell D19. The Data area should now look like this: A B c D E 1 Chapter 4: Applying Excel 2 3 Enter a formula into each of the cells marked with a ? below Review Problem: Activity-Based Costing 4 Data 6 7 Deluxe 2,000 Annual sales in units Direct materials per unit Direct labor-hours per unit Tourist 10,000 17 S 25 $ 5 4 10 11 Direct labor rate $ 12 per DLH 12 13 Estimated 14 Overhead 15 Cosi Total 16 S 50,000 Activities and Activity Measures Labor related (direct labor-hours) Machine setups (setups) Production orders (orders) General factory (machine-hours) 17 Expected Activity Tourist 40,000 2.000 300 Deluxe 10,000 3.000 200 12,000 80.000 150,000 70,000 250,000 550.000 5.000 18 500 40,000 28,000 19 20 21 IS (a). What is the traditional unit product cost for the Deluxe model after this change? Traditional unit product cost for the Deluxe model (b). Which of the following statements are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as Incorrect.) 2 The traditional unit product costs for the two models are unchanged by the change in production orders because traditional overhead allocations based on direct labor-hours ignore other cost drivers such as production orders. 7 The traditional unit product costs for the two models are unchanged by the change in production orders because neither the total estimated overhead cost nor the total direct labor-hours were affected. 2 The traditional unit product costs for the two models have been changed by the change in production orders because traditional overhead allocations based on direct labor-hours ignore other cost drivers such as production orders. (c). What is the ABC unit product cost for the Deluxe model after this change? (Round your intermediate calculations and final answer to 2 decimal places.) ABC unit product cost for the Deluxe model (d). Which of the following statements are true concerning the effects of the change in production orders on the ABC unit product costs? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as Incorrect.) The ABC unit product cost of the Deluxe model has increased and the ABC unit product cost of the Tourist model has decreased because a lower proportion of the production orders are now attributable to the Deluxe model. The ABC unit product cost of the Deluxe model has increased and the ABC unit product cost of the Tourist model has decreased because a higher proportion of the production orders are now attributable to the Deluxe model. The ABC unit product cost of the Deluxe model has decreased and the ABC unit product cost of the Tourist model has increased because a lower proportion of the production orders are now attributable to the Deluxe model The ABC unit product cost of the Deluxe model has decreased and the ABC unit product cost of the Tourist model has increased because a higher proportion of the production orders are now attributable to the Deluxe model. Requirement 3: Change the data in your worksheet so that it matches the following: A B c D E Chapter 4: Applying Excel 1 2 3 Enter a formula into each of the cells marked with a ? below Review Problem: Activity-Based Costing 4 5 6 Data 7 Deluxe 1,000 28 Annual sales in units Direct materials per unit Direct labor-hours per unit Tourist 9,000 28 8 9 $ S 1 1 10 11 Direct labor rate $ 30 per DLH 12 13 Estimated 14 Overhead Deluxe Expected Activity Tourist 9,000 1,000 15 Activities and Activity Measures 16 Labor related direct labor-hours) 17 Machine setups (setups) 18 Production orders (orders) 19 General factory (machine-hours) 20 Total 10,000 100 50 40 Cost s 35,000 120.000 70,000 150.000 $375,000 60 35 15 10,000 10.000 20,000 21 (a). What is the traditional unit product cost for the Deluxe model now? (Round your Intermediate calculations and final answer to 2 decimal places.) Traditional unit product cost for the Deluxe model (b). What is the traditional unit product cost for the Tourist model? (Round your Intermedlete calculations and final answer to 2 decimal places.) Traditional unit product cost for the Tourist model (c). What is the ABC unit product cost for the Deluxe model? (Round your Intermedlate calculations and final answer to 2 decimal places.) ABC unit product cost for the Deluxe model (d). What is the ABC unit product cost for the Tourist model? (Round your intermediate calculations and final answer to 2 decimal places.) ABC unit product cost for the Tourist model Required Information Chapter 4: Applying Excel Step 1: Download the Applying Excel form located on the left-hand side, under files. If you have trouble, the file is also located in D2L under Course Administration. Step 2: Then enter formulas in all cells that contain question marks. For example, in cell C17 enter the formula "=B8%B10". Step 3: Check your worksheet by reducing the direct labor-hours for the Deluxe model in cell B10 from 5 to 2. The Deluxe model's unit product cost under traditional costing should now be $74.00 and the ABC unit product cost should be $143.89. If you do not get these results, fmd the errors in your worksheet and correct them. Step 4: Proceed to the requirements below only after completing your worksheet as it will be used to answer the following questions. Chapter 4: Applying Excel: Exercise Requirement 1: (a). Which of the following statements are true concerning the predetermined overhead rate when the direct labor-hour requirement for the Deluxe model dropped from 5 hours to 2 hours? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as Incorrect.) 7 The predetermined overhead rate decreases because the total estimated overhead cost Increased. 2 The predetermined overhead rate decreased because the total direct labor-hours dropped. 2 The predetermined overhead rate Increased because the total direct labor-hours dropped. The predetermined overhead rate Increased because the total estimated overhead cost Increased. (b). Which of the following statements are true concerning the unit product costs for the Tourist model when the direct labor-hour requirement for the Deluxe model drops from 5 hours to 2 hours? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as Incorrect.) X 2 Economically, the fact that the Deluxe model's direct labor-hour requirement changed should have little or no impact on the cost of the Tourist model x 2 The ABC unit product cost of the Tourist model increases when the Deluxe model's direct labor-hour requirement decreases, but by not by as much as the traditional unit product cost. 2 The traditional unit product cost of the Tourist model increases when the Deluxe model's direct labor-hour requirement decreases. Requirement 2: Change the direct labor-hour requirement for the Deluxe model back to 5 hours in cell B10. Assume that the production orders change so that the Deluxe model will have 200 orders in cell C19 and the Tourist model will have 300 orders in cell D19. The Data area should now look like this: A B c D E 1 Chapter 4: Applying Excel 2 3 Enter a formula into each of the cells marked with a ? below Review Problem: Activity-Based Costing 4 Data 6 7 Deluxe 2,000 Annual sales in units Direct materials per unit Direct labor-hours per unit Tourist 10,000 17 S 25 $ 5 4 10 11 Direct labor rate $ 12 per DLH 12 13 Estimated 14 Overhead 15 Cosi Total 16 S 50,000 Activities and Activity Measures Labor related (direct labor-hours) Machine setups (setups) Production orders (orders) General factory (machine-hours) 17 Expected Activity Tourist 40,000 2.000 300 Deluxe 10,000 3.000 200 12,000 80.000 150,000 70,000 250,000 550.000 5.000 18 500 40,000 28,000 19 20 21 IS (a). What is the traditional unit product cost for the Deluxe model after this change? Traditional unit product cost for the Deluxe model (b). Which of the following statements are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as Incorrect.) 2 The traditional unit product costs for the two models are unchanged by the change in production orders because traditional overhead allocations based on direct labor-hours ignore other cost drivers such as production orders. 7 The traditional unit product costs for the two models are unchanged by the change in production orders because neither the total estimated overhead cost nor the total direct labor-hours were affected. 2 The traditional unit product costs for the two models have been changed by the change in production orders because traditional overhead allocations based on direct labor-hours ignore other cost drivers such as production orders. (c). What is the ABC unit product cost for the Deluxe model after this change? (Round your intermediate calculations and final answer to 2 decimal places.) ABC unit product cost for the Deluxe model (d). Which of the following statements are true concerning the effects of the change in production orders on the ABC unit product costs? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as Incorrect.) The ABC unit product cost of the Deluxe model has increased and the ABC unit product cost of the Tourist model has decreased because a lower proportion of the production orders are now attributable to the Deluxe model. The ABC unit product cost of the Deluxe model has increased and the ABC unit product cost of the Tourist model has decreased because a higher proportion of the production orders are now attributable to the Deluxe model. The ABC unit product cost of the Deluxe model has decreased and the ABC unit product cost of the Tourist model has increased because a lower proportion of the production orders are now attributable to the Deluxe model The ABC unit product cost of the Deluxe model has decreased and the ABC unit product cost of the Tourist model has increased because a higher proportion of the production orders are now attributable to the Deluxe model. Requirement 3: Change the data in your worksheet so that it matches the following: A B c D E Chapter 4: Applying Excel 1 2 3 Enter a formula into each of the cells marked with a ? below Review Problem: Activity-Based Costing 4 5 6 Data 7 Deluxe 1,000 28 Annual sales in units Direct materials per unit Direct labor-hours per unit Tourist 9,000 28 8 9 $ S 1 1 10 11 Direct labor rate $ 30 per DLH 12 13 Estimated 14 Overhead Deluxe Expected Activity Tourist 9,000 1,000 15 Activities and Activity Measures 16 Labor related direct labor-hours) 17 Machine setups (setups) 18 Production orders (orders) 19 General factory (machine-hours) 20 Total 10,000 100 50 40 Cost s 35,000 120.000 70,000 150.000 $375,000 60 35 15 10,000 10.000 20,000 21 (a). What is the traditional unit product cost for the Deluxe model now? (Round your Intermediate calculations and final answer to 2 decimal places.) Traditional unit product cost for the Deluxe model (b). What is the traditional unit product cost for the Tourist model? (Round your Intermedlete calculations and final answer to 2 decimal places.) Traditional unit product cost for the Tourist model (c). What is the ABC unit product cost for the Deluxe model? (Round your Intermedlate calculations and final answer to 2 decimal places.) ABC unit product cost for the Deluxe model (d). What is the ABC unit product cost for the Tourist model? (Round your intermediate calculations and final answer to 2 decimal places.) ABC unit product cost for the Tourist model