Create a spreadsheet with an output section that: (i) determines the six overhead application rates to use under activity-based costing (be sure to label these!) (j) determines the total cost to manufacture one unit electronic keyboard using activity-based costing (show material, labor and overhead separately to enhance manager usefulness) (k) determines the total cost to manufacture one unit digital piano using activity-based costing (show material, labor and overhead separately to enhance manager usefulness) (L) calculates a suggested new selling price for each item based on recent industry reports that indicate most companies similar to ours determine selling price by taking cost and adding 20 percent of cost as markup.
Create a spreadsheet with an output section that: (i) determines the six overhead application rates to use under activity-based costing (be sure to label these!) (j) determines the total cost to manufacture one unit electronic keyboard using activity-based costing (show material, labor and overhead separately to enhance manager usefulness) (k) determines the total cost to manufacture one unit digital piano using activity-based costing (show material, labor and overhead separately to enhance manager usefulness) (L) calculates a suggested new selling price for each item based on recent industry reports that indicate most companies similar to ours determine selling price by taking cost and adding 20 percent of cost as markup.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Manufacturing Overhead
Indirect Materials
Supervision
Building depreciation
Maintenance
Purchasing
Inspection
Amount
$ 22,100
45,368
67,200
23,800
19,812
16,320
Cost Driver
Number of Units
Number of Inspections
Square Footage
Direct Labor Hours
Number of Purchase Orders
Number of Inspections
Electronic
Keyboard
700
700
14,000
9,800
700
700
Digital
Piano
300
900
6,000
4,200
900
900
Create a spreadsheet with an output section that:
(i) determines the six overhead application rates to use under activity-based costing (be sure to label these!)
(j) determines the total cost to manufacture one unit electronic keyboard using activity-based costing (show
material, labor and overhead separately to enhance manager usefulness)
(k) determines the total cost to manufacture one unit digital piano using activity-based costing (show material,
labor and overhead separately to enhance manager usefulness)
(L) calculates a suggested new selling price for each item based on recent industry reports that indicate most
companies similar to ours determine selling price by taking cost and adding 20 percent of cost as markup.
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