For Question 1, I need assistance with calculating the Total Activity under the "Determine the product margin for the OfficeMart orders under a traditional cost system" -- Row 54

Also need assistance with Question 2 - please stick to same format within the Excel example. Thank you!

The Excel worksheet form that appears below is to be used to recreate the Review Problem per- taining to Ferris Corporation. The workbook, and instructions on how to complete the file, can be found in Connect. You should proceed to the requirements below only after completing your worksheet. Required: 1. Check your worksheet by doubling the units ordered in cell B16 to 160. The customer margin under activity-based costing should now be $7,640 and the traditional costing product margin should be $(21,600). If you do not get these results, find the errors in your worksheet and correct them. a. Why has the customer margin under activity-based costing more than doubled when the number of units ordered is doubled? b. Why has the traditional costing product margin exactly doubled from a loss of $10,800 to a loss of $21,600? C. Which costing system, activity-based costing or traditional costing, provides a more accu- rate picture of what happens to profits as the number of units ordered increases? Explain. 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 7 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 12 13 OfficeMart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price $595 18 Direct materials $180 19 Direct labor $50 20 21 Enter a formula into each of the cells marked with a ? below 22 Review Problem: Activity-Based Costing 23 24 Perform the first stage allocations Assembling Processing Units 25 Orders 26 Manufacturing overhead ? ? ? ? 27 Selling and administrative overhead 28 Total cost ? ? 29 30 Compute the activity rates 31 Activity Cost Pools Total Cost Total Activity 32 Assembling units ? ? units 33 Processing orders ? ? orders 34 Supporting customers ? ? customers 35 36 Compute the overhead cost attributable to the OfficeMart orders 37 Activity Cost Pools 38 Assembling units Activity Rate ? per unit ? per order 39 Processing orders ? orders 40 Supporting customers ? per customer ? customer 41 42 Determine the customer margin for the OfficeMart orders under Activity-Based Costing 43 Sales ? 44 Costs: 45 Direct materials ? 46 Direct labor ? 47 Unit-related overhead ? 48 Order-related overhead ? 49 Customer-related overhead ? ? ? 50 Customer margin 51 52 Determine the product margin for the OfficeMart orders under a traditional cost system 53 Manufacturing overhead ? 54 Total activity ? units ? per unit 55 Manufacturing overhead per unit 56 57 Sales 58 Costs: 59 Direct materials ? 60 Direct labor 2 61 Manufacturing overhead ? 62 Traditional costing product margin 63 144 Chapter 7 Form Filled in Chapter 7 Form Chapter 7 Formulas !!!! $500,000 $300,000 Assembling Processing Supporting Units Orders Customers 50% 35% 5% 10% 45% 25% 1,000 250 100 orders customers units 1 customer 4 orders 80 units ? ? 2 DAK Supporting Customers ? ? ? Other 10% 20% Other Activity ? units Total ? ? 2 Activity Rate ? per unit ? per order ? per customer ABC Cost ? ? 2 ? ? ? 2. Let's assume that OfficeMart places different orders next year, purchasing higher-end filing cabinets more frequently, but in smaller quantities per order. Enter the following data into your worksheet: Data Manufacturing overhead .... $500,000 $300,000 Selling and administrative overhead Assembling Processing Units Supporting Customers Orders Other Manufacturing overhead ..... 50% 35% 5% 10% Selling and administrative overhead ..... 10% 45% 25% 20% Total activity 1,000 250 100 units orders customers OfficeMart orders: Customers Orders .... Total number of filing cabinets ordered ... Selling price $795 Direct materials $185 Direct labor $90 a. What is the customer margin under activity-based costing? What is the product margin under the traditional cost system? b. C. Explain why the profitability picture looks much different now than it did when OfficeMart was ordering less expensive filing cabinets less frequently, but in larger quantities per order. 1 customer 20 orders 80 units