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, find the errors in your worksheet and correct them. Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click "Save." You will use this worksheet to answer the questions in Part 2.

Review Problem: Activity-Based Costing Data Annual sales in units Direct materials per unit Direct labor-hours per unit Deluxe 2,000 $25 5 Tourist 10,000 $17 4 Direct labor rate $12 per DLH Total Activities and Activity Measures Labor related (direct labor-hours) Machine setups (setups) Production orders (orders) 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 ? ? ? ? ? Compute the predetermined overhead rate Estimated total manufacturing overhead (a) Estimated total amount of the allocation base (b) Predetermined overhead rate (a) + (b) ? ? DLHs ? per DLH Compute the manufacturing overhead applied Direct labor-hours per unit (a) Predetermined overhead rate (b) Manufacturing overhead applied per unit (a) (b) Deluxe ? DLHS ? per DLH ? Tourist ? DLHS ? per DLH ? Compute traditional unit product costs Direct materials Direct labor Manufacturing overhead applied Traditonal unit product cost Deluxe ? ? ? ? ? Tourist ? ? ? ? Compute activity rates Activities Labor related Machine setups Production orders General factory Estimated Overhead Cost ? ? ? ? Total Expected Activity ? DLHS ? setups ? orders ? MHS Activity Rate ? per DLH ? per setup ? per order ? per MH Compute the ABC overhead cost per unit Activity Rate Activities Labor related Machine setups Production orders General factory Total overhead cost assigned (a) Number of units produced (b) ABC overhead cost per unit (a) (b) ? ? ? ? Deluxe Expected Activity Amount ? ? ? ? ? ? ? 2 ? ? ? ? ? Tourist Expected Activity Amount ? ? ? ? ? ? ? ? ? ? ? Deluxe Tourist Compute the ABC unit product costs Direct materials Direct labor ABC overhead cost per unit (see above) ABC unit product cost