Info in images Required informationThe Chapter 7 Form worksheet is to be used to create your own worksheet version of the Review Problem for ActivityBased Costing found in the text (include a link of the problem).Download the Applying Excel form and enter formulas in all cells that contain question marks.For example, in cell B26 enter the formula "= B4*B8".Note that the worksheet contains a section at the bottom titled "Determine the Product Margin Under a Traditional Cost System" that is not in the Review Problem. In thissection, it is assumed that the traditional costing system allocates manufacturing overhead on the basis of the number of units produced. When completed, that part of theworksheet should contain the following results:52Determine the product margin for the OfficeMart orders under a traditional cost systemManufacturing overhead$ 500,00053Total activity1,000 units5455Manufacturing overhead per unit$500 per unit56Sales$ 47,6005758Costs:Direct materials$ 14,4005960Direct labor4,00061Manufacturing overhead40,000 58,400Traditional costing product margin$ (10,800)6263After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the numbers in the Review Problem.Check your worksheet by doubling the units ordered in cell B16 to 160. The customer margin under activity-based costing should now be $7,640 and the traditional costingproduct margin should be $(21,600). If you do not get these results, find the errors in your worksheet and correct them. v fxChapter 7: Applying ExcelA1ВDEG1 Chapter 7: Applying Excel23 Data4 Manufacturing overhead$500,000$300,0005 Selling and administrative overhead6Assembling Processing SupportingUnits7OrdersCustomersOther8 Manufacturing overhead9 Selling and administrative overhead10 Total activity50%35%5%10%10%45%25%20%1,00025010011unitsorderscustomers1213 OfficeMart orders:14 Customers15 Orders16 Number of filing cabinets ordered in total17 Selling price18 Direct materials19 Direct1 customer4 orders160 units$595$180$502021 Enter a formula into each of the cells marked with a ? below22 Review Problem: Activity-Based Costing2324 Perform the first stage allocationsAssembling Processing SupportingOrders25UnitsCustomersOtherTotal26 Manufacturing overhead27 Selling and administrative overhead28 Total cost??????2930 Compute the activity rates31 Activity Cost Pools32 Assembling units33 Processing orders34 Supporting customersTotal Activity? units? orders? customersTotal CostActivity Rate? per unit? per order? per customer3536 Compute the overhead cost attributable to the OfficeMart orders37 Activity Cost Pools38 Assembling units39 Processing orders40 Supporting customersActivity Rate? per unit? per order? per customerАВС CostActivity? units? orders? customer?4142 Determine the customer margin for the OfficeMart orders under Activity-Based Costing43 Sales44 Costs:Direct materialsDirect laborUnit-related overhead454647?48Order-related overhead49Customer-related overhead?50 Customer margin5152 Determine the product margin for the OfficeMart orders under a traditional cost system53 Manufacturing overhead54 Total activity?? units55 Manufacturing overhead per unit? per unit5657 Sales58 Costs:59Direct materials?60Direct labor61Manufacturing overhead62 Traditional costing product margin??

Activity-based costing is a method of allocating the overheads to each product depending upon the…

Data Manufacturing overhead Selling and administrative overhead $500,000 $300,000 Assembling Processing Supporting Orders 35% Units Customers Other Manufacturing overhead Selling and administrative overhead Total activity 50% 5% 10% 10% 45% 25% 20% 1,000 250 100 units orders customers OfficeMart orders: Customers Orders Number of filing cabinets ordered in total Selling price Direct materials Direct labor 1 customer 4 orders 160 units $595 $180 $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 Orders Units Customers Other Total Manufa Selling and administrative overhead Total cost ead Compute the activity rates Activity Cost Pools Assembling units Processing orders Supporting customers Total Activity ? units ? orders ? customers Activity Rate ? per unit ? per order ? per customer Total Cost ? Compute the overhead cost attributable to the OfficeMart orders Activity Cost Pools Assembling units Processing orders Supporting customers Activity Rate ? per unit ? per order ? per customer АВС Сost Activity 2 units 2 orders 2 customer Determine the customer margin for the OfficeMart orders under Activity-Based Costing Sales Costs: Direct materials Direct labor Unit-related overhead ? Order-related overhead Customer-related overhead Customer margin Determine the product margin for the OfficeMart orders under a traditional cost system Manufacturing overhead Total activity Manufacturing overhead per unit ? ? units ? per unit Sales Costs: Direct materials Direct labor Manufacturing overhead Traditional costing product margin

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q