activity based costing, got that part done but now i have to determine product margin under traditional can’t figure out how

activity based costing, got that part done but now i have to determine product margin under traditional can’t figure out how

ATTACHMENT PREVIEW

qattachments_cc1082328ea836f90aa50f54f9397b0af531810b.xlsx
Chapter 7: Applying Excel
Data
\$500,000
\$300,000
Other
50%
35%
5%
10%
10%
45%
25%
20%
Total activity
1,000
250
100
units
orders
customers
OfficeMart orders:
Customers
1 customer
Orders
4 orders
Number of filing cabinets ordered in total
80 units
Selling price
\$595
Direct materials
\$180
Direct labor
\$50
Enter a formula into each of the cells marked with a ? below
Review Problem: Activity-Based Costing
Perform the first stage allocations
Other
Total
\$250,000
\$175,000
\$25,000
\$50,000
\$500,000
30,000
135,000
75,000
60,000
300,000
Total cost
\$280,000
\$310,000
\$100,000
\$110,000
\$800,000
Compute the activity rates
Activity Cost Pools
Total Cost
Total Activity
Activity Rate
Assembling units
\$280,000
1,000 units
\$280 per unit
Processing orders
\$310,000
250 orders
\$1,240 per order
Supporting customers
\$100,000
100 customers
\$1,000 per customer
Compute the overhead cost attributable to the OfficeMart orders
Activity Cost Pools
Activity Rate
Activity
ABC Cost
Assembling units
\$280 per unit
80 units
\$22,400
Processing orders
\$1,240 per order
4 orders
\$4,960
Supporting customers
\$1,000 per customer
1 customer
\$1,000
Determine the customer margin for the OfficeMart orders under Activity-Based Costing
Sales
\$47,600
Costs:
Direct materials
\$14,400
Direct labor
4,000
\$22,400
\$4,960
\$1,000
\$46,760
Customer margin
\$840
Determine the product margin for the OfficeMart orders under a traditional cost system
\$499,375
Total activity
? units
? per unit
Sales
\$47,600
Costs:
Direct materials
\$14,400
Direct labor
4,000
?
?
?
Assembling
Units
Processing
Orders
Supporting
Customers
Assembling
Units
Processing
Orders
Supporting
Customers

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Chapter 7: Applying Excel
AFTER
completing the blank form, copy rows 4 to 62 to this sheet and change the units ordered in cell B16 to 160 & complete requirement 1’s questions
Data