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 250 orders in cell C19 and the Tourist model will have 250 orders in cell D19. The Data area should now look like this: A B 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 5 6 Data 7 Deluxe Tourist 8 Annual sales in units 9 Direct materials per unit 10 Direct labor-hours per unit 2,000 25 $ 10,000 17 $ 5 4 11 $ 12 per DLH 12 Direct labor rate 13 14 15 Estimated Overhead Cost $ 16 Activities and Activity Measures 17 Labor related (direct labor-hours) 18 Machine setups (setups) 19 Production orders (orders) 20 General factory (machine-hours) 80,000 150,000 70,000 250,000 550,000 Expected Activity Deluxe Tourist 10,000 40,000 3,000 2,000 250 250 12,000 28.000 Total 50,000 5,000 500 40.000 21 $ $ (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.) 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. 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. 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. (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.) 2 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. 2 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. 1 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
