check the Excel template attached below, which you will use to answer the questions that follow.

The following information applies to the questions displayed below.] Cary Company manufactures two models of industrial componentsa Standard model and an Advanced Model. It has provided the following information with respect to these two products:

	Standard	Advanced
Number of units produced and sold	20,000	10,000
Selling price per unit	$ 150	$ 200
Direct materials per unit	$ 40	$ 60
Direct labor cost per unit	$ 30	$ 30
Direct labor-hours per unit	1.50	1.50

The company considers all of its manufacturing overhead costs ($1,346,250) to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours.

Required: 1. Go to the tab titled Plantwide Approach:

a. Create a formula that calculates the direct labor-hours in the denominator of the plantwide overhead rate (cell F3). Also, create a formula that calculates the plantwide overhead rate (cell F4). What formulas correctly calculate these two amounts?

b. What is the plantwide overhead rate?

c. Create the appropriate formulas (within cells B11 through D17) to compute the gross margins for the Standard and Advanced models as well as the company as a whole (Hint: Each products gross margin equals its sales minus its direct materials, direct labor, and manufacturing overhead costs). What formulas correctly calculate the direct materials, direct labor, and manufacturing overhead for the Standard model?

d. What are the gross margins for the Standard model (cell B17) and the Advanced model (cell C17)?

e. Using Microsoft Excels Charts feature, create a pie chart that shows the percent of total manufacturing overhead cost allocated to each product using the plantwide approach. What percent of the total manufacturing overhead cost is allocated to the Standard model using the plantwide approach? The Advanced model?

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