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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

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

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....
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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 $ 500,000 53 Total activity 1,000 units 54 55 Manufacturing overhead per unit $ 500 per unit 56 Sales $ 47,600 57 58 Costs: Direct materials $ 14,400 59 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 $ 500,000 53 Total activity 1,000 units 54 55 Manufacturing overhead per unit $ 500 per unit 56 Sales $ 47,600 57 58 Costs: Direct materials $ 14,400 59 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.
v fx Chapter 7: Applying Excel A1 В D E G 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead $500,000 $300,000 5 Selling and administrative overhead 6 Assembling Processing Supporting Units 7 Orders Customers 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: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct 1 customer 4 orders 160 units $595 $180 $50 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 Assembling Processing Supporting Orders 25 Units Customers Other Total 26 Manufacturing overhead 27 Selling and administrative overhead 28 Total cost ? ? ? ? ? ? 29 30 Compute the activity rates 31 Activity Cost Pools 32 Assembling units 33 Processing orders 34 Supporting customers Total Activity ? units ? orders ? customers Total Cost Activity Rate ? per unit ? per order ? per customer 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 ? per unit ? per order ? per customer АВС Cost Activity ? units ? orders ? customer ? 41 42 Determine the customer margin for the OfficeMart orders under Activity-Based Costing 43 Sales 44 Costs: Direct materials Direct labor Unit-related overhead 45 46 47 ? 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 ? ? units 55 Manufacturing overhead per unit ? per unit 56 57 Sales 58 Costs: 59 Direct materials ? 60 Direct labor 61 Manufacturing overhead 62 Traditional costing product margin ? ?
Transcribed Image Text:v fx Chapter 7: Applying Excel A1 В D E G 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead $500,000 $300,000 5 Selling and administrative overhead 6 Assembling Processing Supporting Units 7 Orders Customers 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: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct 1 customer 4 orders 160 units $595 $180 $50 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 Assembling Processing Supporting Orders 25 Units Customers Other Total 26 Manufacturing overhead 27 Selling and administrative overhead 28 Total cost ? ? ? ? ? ? 29 30 Compute the activity rates 31 Activity Cost Pools 32 Assembling units 33 Processing orders 34 Supporting customers Total Activity ? units ? orders ? customers Total Cost Activity Rate ? per unit ? per order ? per customer 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 ? per unit ? per order ? per customer АВС Cost Activity ? units ? orders ? customer ? 41 42 Determine the customer margin for the OfficeMart orders under Activity-Based Costing 43 Sales 44 Costs: Direct materials Direct labor Unit-related overhead 45 46 47 ? 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 ? ? units 55 Manufacturing overhead per unit ? per unit 56 57 Sales 58 Costs: 59 Direct materials ? 60 Direct labor 61 Manufacturing overhead 62 Traditional costing product margin ? ?
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