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

Download attachment

qattachments_cc1082328ea836f90aa50f54f9397b0af531810b.xlsx
Chapter 7: Applying Excel
Data
Manufacturing overhead
$500,000
Selling and administrative overhead
$300,000
Other
Manufacturing overhead
50%
35%
5%
10%
Selling and administrative overhead
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
Manufacturing overhead
$250,000
$175,000
$25,000
$50,000
$500,000
Selling and administrative overhead
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
Unit-related overhead
$22,400
Order-related overhead
$4,960
Customer-related overhead
$1,000
$46,760
Customer margin
$840
Determine the product margin for the OfficeMart orders under a traditional cost system
Manufacturing overhead
$499,375
Total activity
? units
Manufacturing overhead per unit
? per unit
Sales
$47,600
Costs:
Direct materials
$14,400
Direct labor
4,000
Manufacturing overhead
?
?
Traditional costing product margin
?
Assembling
Units
Processing
Orders
Supporting
Customers
Assembling
Units
Processing
Orders
Supporting
Customers

Unlock Solution Unlocking…

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
Answers to Requirement 1

Show entire document

Leave a Comment