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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 section, it is assumed that the traditional costing system allocates manufacturing overhead on the basis of the number of units produced. When completed, that part worksheet should contain the following results: 52 Determine the product margin for the OfficeMart orders under a traditional cost system 53 Manufacturing overhead $ 500,000 54 Total activity 1.000 units Manufacturing overhead per unit $ 500 per unit 55 56 57 Sales $ 47,600 58 Costs: 59 Direct materials $ 14,400 60 Direct labor 4,000 61 Manufacturing overhead 40,000 58,400 Traditional costing product margin $ (10,800) 62 63 After 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 c product margin should be $(21,600). If you do not get these results, find the errors in your worksheet and correct them.

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 section, it is assumed that the traditional costing system allocates manufacturing overhead on the basis of the number of units produced. When completed, that part worksheet should contain the following results: 52 Determine the product margin for the OfficeMart orders under a traditional cost system 53 Manufacturing overhead $ 500,000 54 Total activity 1.000 units Manufacturing overhead per unit $ 500 per unit 55 56 57 Sales $ 47,600 58 Costs: 59 Direct materials $ 14,400 60 Direct labor 4,000 61 Manufacturing overhead 40,000 58,400 Traditional costing product margin $ (10,800) 62 63 After 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 c product margin should be $(21,600). If you do not get these results, find the errors in your worksheet and correct them.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help with the "Determine the customer margin for the OfficeMart orders under Activity-Based Costing" section and please include the excel formulas. Thank you! :)

Required information The Chapter 7 Form worksheet is to be used to create your own worksheet version of the Review Problem for Activity Based 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 this section, 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 the worksheet should contain the following results: 52 Determine the product margin for the OfficeMart orders under a traditional cost system Manufacturing overhead Total activity 53 $500,000 54 1,000 units 55 Manufacturing overhead per unit 2$ 500 per unit 56 Sales $ 47,600 57 58 Costs: 59 Direct materials $ 14,400 60 Direct labor 4,000 61 Manufacturing overhead 40,000 58,400 Traditional costing product margin $ (10,800) 62 63 After 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 costing product margin should be $(21,600). If you do not get these results, find the errors in your worksheet and correct them.
Transcribed Image Text:Required information The Chapter 7 Form worksheet is to be used to create your own worksheet version of the Review Problem for Activity Based 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 this section, 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 the worksheet should contain the following results: 52 Determine the product margin for the OfficeMart orders under a traditional cost system Manufacturing overhead Total activity 53 $500,000 54 1,000 units 55 Manufacturing overhead per unit 2$ 500 per unit 56 Sales $ 47,600 57 58 Costs: 59 Direct materials $ 14,400 60 Direct labor 4,000 61 Manufacturing overhead 40,000 58,400 Traditional costing product margin $ (10,800) 62 63 After 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 costing product margin should be $(21,600). If you do not get these results, find the errors in your worksheet and correct them.
x fx Determine the customer А42 В D 1 Chapter 7: Applying Excel 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead $500,000 $300,000 6 Assembling Units Processing Orders Supporting Customers 7 Other 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 50% 35% 5% 10% 10% 45% 25% 20% 1,000 250 100 11 units orders customers 12 13 OfficeMart orders: 1 customer 4 orders 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 160 units $595 $180 $50 19 Direct labor 20 21 Enter a formula into each of the cells marked with a ? below 22 Review Problem: Activity-Based Costing 23 24 Perform the first stage allocations Processing Orders Supporting Assembling Units $ Total 2$ 25 Customers Other 250,000 $ 50.000 26 Manufacturing overhead 27 Selling and administrative overhead 28 Total cost 175,000 $25,000.00 135,000 500.000 30,000 75,000 60,000 300,000 $ 280,000 2$ 310,000 $ 100,000 $ 110,000 800,000 29 30 Compute the activity rates 31 Activity Cost Pools 32 Assembling units 33 Processing orders 34 Supporting customers Total Activity Activity Rate $280 per unit $1,240 per order $1,000 per customer Total Cost $ 280,000 1.000 units $ 310,000 250 orders $ 100,000 100 customers 35 36 Compute the overhead cost attributable to the OfficeMart orders 37 Activity Cost Pools 38 Assembling units 39 Processing orders 40 Supporting customers Activity Rate $280 per unit $1,240 per order $1,000 per customer АВС Cost $44,800 $4,960 $1,000 Activity 160 units 4 orders 1 customer 41 42 Determine the customer margin for the OfficeMart orders under Activity-Based Costing 43 Sales 44 Costs: Direct materials Direct labor 45 46 47 Unit-related overhead 48 Order-related overhead 49 Customer-related overhead ? 50 Customer margin ? 51 52 Determine the product margin for the OfficeMart orders under a traditional cost system 53 Manufacturing overhead 54 Total activity 55 Manufacturing overhead per unit $500,000 1.000 units $500 per unit 56 57 Sales $ 95.200 58 Costs: 59 Direct materials $ 28.800 60 Direct labor 8,000 61 Manufacturing overhead 62 Traditional costing product margin 80.000 116,800 $ 212,000 63
Transcribed Image Text:x fx Determine the customer А42 В D 1 Chapter 7: Applying Excel 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead $500,000 $300,000 6 Assembling Units Processing Orders Supporting Customers 7 Other 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 50% 35% 5% 10% 10% 45% 25% 20% 1,000 250 100 11 units orders customers 12 13 OfficeMart orders: 1 customer 4 orders 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 160 units $595 $180 $50 19 Direct labor 20 21 Enter a formula into each of the cells marked with a ? below 22 Review Problem: Activity-Based Costing 23 24 Perform the first stage allocations Processing Orders Supporting Assembling Units $ Total 2$ 25 Customers Other 250,000 $ 50.000 26 Manufacturing overhead 27 Selling and administrative overhead 28 Total cost 175,000 $25,000.00 135,000 500.000 30,000 75,000 60,000 300,000 $ 280,000 2$ 310,000 $ 100,000 $ 110,000 800,000 29 30 Compute the activity rates 31 Activity Cost Pools 32 Assembling units 33 Processing orders 34 Supporting customers Total Activity Activity Rate $280 per unit $1,240 per order $1,000 per customer Total Cost $ 280,000 1.000 units $ 310,000 250 orders $ 100,000 100 customers 35 36 Compute the overhead cost attributable to the OfficeMart orders 37 Activity Cost Pools 38 Assembling units 39 Processing orders 40 Supporting customers Activity Rate $280 per unit $1,240 per order $1,000 per customer АВС Cost $44,800 $4,960 $1,000 Activity 160 units 4 orders 1 customer 41 42 Determine the customer margin for the OfficeMart orders under Activity-Based Costing 43 Sales 44 Costs: Direct materials Direct labor 45 46 47 Unit-related overhead 48 Order-related overhead 49 Customer-related overhead ? 50 Customer margin ? 51 52 Determine the product margin for the OfficeMart orders under a traditional cost system 53 Manufacturing overhead 54 Total activity 55 Manufacturing overhead per unit $500,000 1.000 units $500 per unit 56 57 Sales $ 95.200 58 Costs: 59 Direct materials $ 28.800 60 Direct labor 8,000 61 Manufacturing overhead 62 Traditional costing product margin 80.000 116,800 $ 212,000 63
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