Enter formulas in the cells that contain question marks. For example, in cell C17 enter the formula "= B8*B10". After entering formulas in all of the cells that contained question marks, verify that the calculated numbers match the numbers in the Review Problem. Check your worksheet by reducing the direct labor-hours for the Deluxe model in cell B10 from 5 to 2. The Deluxe model's unit product cost under traditional costing should now be $74.00 and the ABC unit product cost should be $143.89. If you do not get these results, fmd the errors in your worksheet and correct them.

1 Chapter 4: Applying Excel 3 Enter a formula into each of the cells marked with a ? below 4 Review Problem: Activity-Based Costing 6 Data 8 Annual sales in units 9 Direct materials per unit 10 Direct labor-hours per unit Deluxe 2,000 $25 Tourist 10,000 $17 4 12 Direct labor rate $12 per DLH Total 16 Activities and Activity Measures 17 Labor related direct labor-hours) 18 Machine setups (setups) 19 Production orders (orders) 20 General factory (machine-hours) Estimated Overhead Cost $ 80,000 150,000 70,000 250,000 Expected Activity Deluxe Tourist ? 3,000 2,000 100 300 12,000 28,000 23 Compute the predetermined overhead rate 24 Estimated total manufacturing overhead (a) 25 Estimated total amount of the allocation base (b) 26 Predetermined over head rate (a) = (b) ? DLHs ? per DLH 28 Compute the manufacturing overhead applied 29 Direct labor-hours per unit (a) 30 Predetermined over head rate (b) 31 Manufacturing overhead applied per unit (a) (b) Deluxe ? DLHS ? per DLH Tourist ? DLHS ? per DLH Deluxe Tourist 33 Compute traditional unit product costs 34 Direct materials 35 Direct labor 36 Manufacturing overhead applied 37 Traditonal unit product cost ? 2 27 ? 39 Compute activity rates 0 Estimated Overhead Cost 21 Activities 2 Labor related 23 Machine setups 14 Production orders 5 General factory Total Expected Activity ? DLHS 7 setups ? orders ? MHS Activity Rate ? per DLH ? per setup ? per order ? per MH ? 7 Compute the ABC overhead cost per unit Activity Rate Deluxe Expected Activity Amount Tourist Expected Activity Amount 29 Activities 50 Labor related 51 Machine setups 52 Production orders 53 General factory 54 Total overhead cost assigned (a) 55 Number of units produced (b) 56 ABC overhead cost per unit (a) (b) ? ? ? ? ? ? ? Deluxe Tourist 58 Compute the ABC unit product costs 59 Direct materials 50 Direct labor 51 ABC overhead cost per unit (see above) 52 ABC unit product cost