Chapter 7: Applying Excel Data Manufacturing overhead Selling and administrative overhead $500,000 $300,000 Assembling Units Processing Orders Supporting Customers 5% Other 10% 50% 35% Manufacturing overhead Selling and administrative overhead Total activity 10% 45% 250 20% ,000 250 100 units orders! customers Orders $180 . ..... ...... . .. . . .... .... ... . ..... . Total OfficeMart orders: Customers 1 customer 4 orders Number of filing cabinets ordered in total 80 units Selling price $595 Direct materials 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 Assembling Processing Supporting Units Orders Manufacturing overhead Selling and administrative overhead Total cost Compute the activity rates Activity Cost Pools Total Cost Total Activity Activity Rate Assembling units ? units ? per unit Processing orders ? orders ? per order Supporting customers ? customers ? per customer Compute the overhead cost attributable to the OfficeMart orders Activity Cost Pools Activity Rate Activity ABC Cost Assembling units ? per unit ? units Processing orders ? per order ?orders Supporting customers ?per customer Determine the customer margin for the OfficeMart orders under Activity-Based Costing ? customer 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 per unit Sales Costs: Direct materials Direct labor Manufacturing overhead Traditional costing product margin units