Ch. 17 P17-1B - Excel HW Assignment (2)
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School
University of Nairobi *
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Course
161
Subject
Finance
Date
Nov 24, 2024
Type
xlsx
Pages
8
Uploaded by anayaharry86
Your grade on this assignment will be evaluated as follows:
Use of formulas where appropriate 5% Formatting of Financial Stat
10%
Correct answers/accuracy
90%
Total
100% (out of a score of 10
Accuracy determination
Each cell = 1.5 points each
125
discussion question
5
Total possible points
130
00 points)
Instructions
(a) Under traditional product costing, compute the total unit cost of each product. Prepare
schedule of the individual costs by product (similar to Illustration 4-3 on page 5).
(b) Under ABC, prepare a schedule showing the computations of the activity-based overhe
(c) Prepare a schedule assigning each activity's overhead cost pool to each product based
(Include a computation of overhead cost per unit, rounding to the nearest cent.)
(d) Compute the total cost per unit for each product under ABC.
(e) Classify each of the activities as a value-added activity or a non-value-added activity.
(f) Comment on (1) the comparative overhead cost per unit for the two products under ABC
total costs per unit under traditional costing and ABC.
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NOTE: Enter a number in cells requesting a value; enter a formula in cells wit
Products
(a)
Manufacturing Costs
Home Model
Commercial Model
Direct materials
Value
Value
Direct labor Value
Value
Overhead
Value
Value
Total unit cost
?
?
Estimated
÷
Expected Use of
(b)
Activity Cost Pool
Overhead
Cost Drivers
Purchasing
Value
Value
Receiving
Value
Value
Assembling
Value
Value
Testing
Value
Value
Finishing
Value
Value
Packing and shipping
Value
Value
?
(c)
Home Model
Pounds
x
Activity-Based =
Activity Cost Pool
of Drivers
OH Rates
Purchasing
Value
Value
Receiving
Value
Value
Assembling
Value
Value
Testing
Value
Value
Finishing
Value
Value
Packing and shipping
Value
Value
Total cost assigned (a)
Units produced
OH cost per unit (a) +(b)
Home Commercial
(d)
ABC Manufacturing Costs
Model
Model
Direct materials
Value
Value
Direct labor
Value
Value
Overhead
Value
Value
Total cost per unit
?
?
(e )
Activity
Value- vs. Non-Value-Added
Purchasing
Receiving
Assembling
Testing
Finishing
Packing and shipping
(f)
Comment on (1) the comparative overhead cost per unit for the two products un
total costs per unit under traditional costing and ABC.
e a simple comparative
ead rates (per cost driver).
d on the use of cost drivers.
C, and (2) the comparative
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th a "?" .
Expected Use of Drivers
= Activity-Based
OH Rate
Orders
?
Pounds
?
Number of parts
?
Number of tests
?
Units
?
Pounds
?
Commercial Model
Cost
Expected Use
x Activity-Based =
Cost
Assigned of Drivers
OH Rates
Assigned ?
Value
Value
?
?
Value
Value
?
?
Value
Value
?
?
Value
Value
?
?
Value
Value
?
?
Value
Value
?
?
?
Value
Value
?
?
nder ABC, and (2) the comparative
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d. Conversion cost per unit
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