CH 7 Applying Excel

Instructions: 1. Update this spreadsheet with the appropriate formulas in the cells below with question marks. 2. Then, make a copy of the sheet in this same workbook and prepare Requirement 2 on page 340. Note: You can also make the changes suggested in Requirement 1, if you want, to check your worksheet the first time to make sure it works properly. Chapter 7: Applying Excel Page 339 Data Manufacturing overhead Selling and administrative overhead $500,000 $300,000 Manufacturing overhead Selling and administrative overhead Total activity Assembling Processing Supporting Units Orders Customers 50% 35% 5% 10% 45% 25% 1,000 250 100 units orders customers Other 10% 20% OfficeMart orders: Customers Orders Number of filing cabinets ordered in total Selling price Direct materials Direct labor 1 customer 4 orders 80 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 Customers Other Total ? Manufacturing overhead Selling and administrative overhead Total cost ? Total Cost 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 ABC Cost Compute the overhead cost attributable to the OfficeMart orders Activity Cost Pools Activity Rate Assembling units ? per unit Processing orders ? per order Supporting customers ? per customer Activity ? units ? orders ? 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 "Check My Work". Customer margin should be $840 Determine the product margin for the OfficeMart orders under a traditional cost system Manufacturing overhead Total activity ? units Manufacturing overhead per unit ? per unit Sales Costs: Direct materials Direct labor Manufacturing overhead Traditional costing product margin "Check My Work": Customer margin should be ($10,800)