Assigning indirect costs to products or services using activity based costing. 1. Assign indirect costs to products or services using activity based costing. FILE HOME INSERT PAGE LAYOUT FORMULAS DATA VEW Assigning indirect costs to products or services using activity based costing Excel REVIEW 700 - B Sign Inj AutoSum Paste Cloboard A A- Wrap Text Merge & Center Currency 5-% 2 Conditional Format as Cell Formatting Table Styles Insert Delete Format Clear- Sort & Find & Filter Select Alignment Styles Ce Editing 816 A x % . D F 1 Sundial Co. has assigned $710,000 in total overhead cost to four different activity cost pools. The activity requirements for its two products lines, Economy and Deluxe, are shown below. 2 input formulas to solve for the various unknowns in the table below. The formulas may vary for each cost pool depending on what items are known and unknown. Activity Requirements by Product Line 4 Activity Activity Cost Pool 5 Material Handling $ Overhead Cost 300,000 Activity Cost Driver Activity Rate Deluxe Proportion Economy Model Proportion (8) Model (N) 6 Machine Set-Ups 5 210,000 7 Engineering Support Power and Space 5,000 Material moves Set-ups Engineering hours 5 20,000 square feet. Total overhead cost $ per move per set-up 12.50 per hour per sq. ft. 2,000 3,000 300 2,000 900 20% 50% 710,000 10 11 Use formulas to assign overhead to each product using both activity rates and activity proportions (N) 12 Create if/then statements to verify that the two methods produce the same results 13 14 Overhead Assigned Using Activity Rates 15 Activity Cost Pool Economy Deluxe 1 Material Handling 17 Machine Set Ups 18 Engineering Support 19 Power and Space READY 5/5 Sheet1 Overhead Assigned Using Activity Proportions (N) Total Economy Deluxe Total L Verification Create if/then statements to determine if the two methods produce identical results by indicating "pass" or "fail" Economy Deluxe Total Hare 100% Show Me