385288559.

xlsx

Chapter 6: Applying Excel Name(s) Bobby Joyce Jacob Gouveia

Data
Manufacturing overhead $500,000 Instructions: Complete the worksheet using links and formulas for
Selling and administrative overhead $300,000 the cells highlighted in yellow; no links/formulas no credit. Check
digits are provided in red along the way. To keep it simple, let's use
Assembling Processing Supporting
Units Orders Customers Other the same partnerships/groups used for the budget project. This is
Manufacturing overhead 50% 35% 5% 10% due in Moodle as an Excel spreadsheet by one member of the team
Selling and administrative overhead 10% 45% 25% 20% by Friday, December 8 at 11 p.m. and will count as 1/2 of your final
Total activity 1,000 250 100 exam grade or 50 points. There is a late fee deduction of 2 points
units orders customers per hour up to the 50 point maximum.

OfficeMart orders:
Customers 1 customer
Orders 4 orders
Number of filing cabinets ordered in total 80 units
Selling price $595
Direct materials $180
Direct labor $50

Enter a formula into each of the cells marked with a ? below

Review Problem: Activity-Based Costing

Perform the first stage allocations

Assembling Processing Supporting
Units Orders Customers Other Total
Manufacturing overhead $ 250,000 $ 175,000 $ 25,000 $ 50,000 $ 500,000
Selling and administrative overhead 30,000 135,000 75,000 60,000 300,000
Total cost $ 280,000 $ 310,000 $ 100,000 $ 110,000 $ 800,000

Compute the activity rates

Activity Cost Pools Total Cost Total Activity Activity Rate
Assembling units $ 280,000 1,000 units $280 per unit
Processing orders $ 310,000 250 orders $1,240 per order
Supporting customers $ 100,000 100 customers $1,000 per customer
$ 2,520 Total of Activity Rates
Compute the overhead cost attributable to the OfficeMart orders
Activity Cost Pools Activity Rate Activity ABC Cost
Assembling units $280 per unit 80 units $22,400
Processing orders $1,240 per order 4 orders $4,960
Supporting customers $1,000 per customer 1 customer $1,000
$ 28,360 Total of ABC Cost
Determine the customer margin for the OfficeMart orders under Activity-Based Costing
Sales $ 47,600
Costs:
Direct materials $ 14,400
Direct labor 4,000
Unit-related overhead 22,400
Order-related overhead 4,960
Customer-related overhead 1,000 46,760
Customer margin $ 840

Determine the product margin for the OfficeMart orders under a traditional cost system
Manufacturing overhead $500,000
Total activity 1,000 units
Manufacturing overhead per unit $500 per unit

Sales $ 47,600
Costs:
Direct materials $ 14,400
Direct labor 4,000
Manufacturing overhead 40,000 58,400
Traditional costing product margin $ (10,800)

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