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Using Excel to Compute Overhead Applied for Activity-Based Costing PROBLEM Spud, Inc. a manufacturer of gourmet snacks, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2022. Activity Cost Pools Ordering and receiving Food processing Packaging $ Estimated Overhead 84,000 480,000 1,760,000 The following activities occurred during 2022. Number of orders Number of machine hours Number of labor hours 7,000 40,000 25,000 Estimated Use of Cost Drivers Per Activity 12,000 orders 60,000 machine hours 40,000 labor hours Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area or work area as indicated. Use the SUM function with cell references to calculate the total. What is the total overhead applied? Activity Cost Pools Ordering and receiving Food processing Packaging Total applied Overhead Rates per per per Overhead Applied

Using Excel to Compute Overhead Applied for Activity-Based Costing PROBLEM Spud, Inc. a manufacturer of gourmet snacks, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2022. Activity Cost Pools Ordering and receiving Food processing Packaging $ Estimated Overhead 84,000 480,000 1,760,000 The following activities occurred during 2022. Number of orders Number of machine hours Number of labor hours 7,000 40,000 25,000 Estimated Use of Cost Drivers Per Activity 12,000 orders 60,000 machine hours 40,000 labor hours Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area or work area as indicated. Use the SUM function with cell references to calculate the total. What is the total overhead applied? Activity Cost Pools Ordering and receiving Food processing Packaging Total applied Overhead Rates per per per Overhead Applied

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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### Using Excel to Compute Overhead Applied for Activity-Based Costing #### Problem: Spud, Inc., a manufacturer of gourmet snacks, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2022. | Activity Cost Pools | Estimated Overhead | Estimated Use of Cost Drivers Per Activity | |---------------------------|--------------------|---------------------------------------------| | Ordering and receiving | $84,000 | 12,000 orders | | Food processing | $480,000 | 60,000 machine hours | | Packaging | $1,760,000 | 40,000 labor hours | The following activities occurred during 2022: - **Number of orders**: 7,000 - **Number of machine hours**: 40,000 - **Number of labor hours**: 25,000 #### Student Work Area **Required**: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area or work area as indicated. Use the `SUM` function with cell references to calculate the total. **What is the total overhead applied?** **Activity Cost Pools** | **Overhead Rates** | **Overhead Applied** --- | --- | --- Ordering and receiving | (yellow cell) per (calculated value) | (yellow cell) Food processing | (yellow cell) per (calculated value) | (yellow cell) Packaging | (yellow cell) per (calculated value) | (yellow cell) **Total applied** | | (yellow cell for total value) ### Detailed Instructions for Calculation: 1. **Calculate Overhead Rates** for each activity cost pool: - For ordering and receiving: \(\text{Overhead Rate} = \frac{\$84,000}{12,000 \text{ orders}}\) - For food processing: \(\text{Overhead Rate} = \frac{\$480,000}{60,000 \text{ machine hours}}\) - For packaging: \(\text{Overhead Rate} = \frac{\$1,760,000}{40,000 \text{ labor hours}}\) 2. **Apply the Overhead Rates** to the actual activities that occurred: - Ordering and receiving: Multiply the overhead rate by the number of orders. - Food processing: Multiply the overhead rate by the
Transcribed Image Text:### Using Excel to Compute Overhead Applied for Activity-Based Costing #### Problem: Spud, Inc., a manufacturer of gourmet snacks, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2022. | Activity Cost Pools | Estimated Overhead | Estimated Use of Cost Drivers Per Activity | |---------------------------|--------------------|---------------------------------------------| | Ordering and receiving | $84,000 | 12,000 orders | | Food processing | $480,000 | 60,000 machine hours | | Packaging | $1,760,000 | 40,000 labor hours | The following activities occurred during 2022: - **Number of orders**: 7,000 - **Number of machine hours**: 40,000 - **Number of labor hours**: 25,000 #### Student Work Area **Required**: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area or work area as indicated. Use the `SUM` function with cell references to calculate the total. **What is the total overhead applied?** **Activity Cost Pools** | **Overhead Rates** | **Overhead Applied** --- | --- | --- Ordering and receiving | (yellow cell) per (calculated value) | (yellow cell) Food processing | (yellow cell) per (calculated value) | (yellow cell) Packaging | (yellow cell) per (calculated value) | (yellow cell) **Total applied** | | (yellow cell for total value) ### Detailed Instructions for Calculation: 1. **Calculate Overhead Rates** for each activity cost pool: - For ordering and receiving: \(\text{Overhead Rate} = \frac{\$84,000}{12,000 \text{ orders}}\) - For food processing: \(\text{Overhead Rate} = \frac{\$480,000}{60,000 \text{ machine hours}}\) - For packaging: \(\text{Overhead Rate} = \frac{\$1,760,000}{40,000 \text{ labor hours}}\) 2. **Apply the Overhead Rates** to the actual activities that occurred: - Ordering and receiving: Multiply the overhead rate by the number of orders. - Food processing: Multiply the overhead rate by the
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