Question: I need help with this spreadsheet. I am in cost accounting and it needs to have formulas in the cells. I started off just fine
I need help with this spreadsheet. I am in cost accounting and it needs to have formulas in the cells. I started off just fine and then lost my way. Please see attached file. Can you fix my formulas and maybe write out what you did so I can understand it.
| Chapter 7: Applying Excel | |||||||||||||
| Data | |||||||||||||
| Manufacturing overhead | $500,000 | ||||||||||||
| Selling and administrative overhead | $300,000 | ||||||||||||
| Assembling Units | Processing Orders | Supporting Customers | 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 | 1 | customer | Check your worksheet by doubling the units in cell B16 t0 160. The margin under | ||||||||||
| Orders | 4 | orders | activity costing should now be 7640 and the traditional costing product margin should be | ||||||||||
| Number of filing cabinets ordered in total | 80 | units | ($21,600). If you dont get these results, find the errors in your worksheet and correct | ||||||||||
| Selling price | $595 | them. | |||||||||||
| Direct materials | $180 | ||||||||||||
| 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 Units | Processing Orders | Supporting Customers | Other | Total | |||||||||
| Manufacturing overhead | $ 250,000 | $ 175,000 | $ 25,000 | $ 50,000 | $ 500,000 | ||||||||
| Selling and administrative overhead | 30,000 | 135,000 | 75,000 | 60,000 | 300,000 | ||||||||
| Total cost | $ 280,000 | $ 310,000 | $ 100,000 | $ 110,000 | $ 800,000 | ||||||||
| Compute the activity rates | |||||||||||||
| Activity Cost Pools | Total Cost | Total Activity | Activity Rate | ||||||||||
| Assembling units | $280,000 | 1,000 | units | $280 | per unit | ||||||||
| Processing orders | $310,000 | 250 | orders | $1,240 | per order | ||||||||
| Supporting customers | $100,000 | 100 | customers | $1,000 | per customer | ||||||||
| Compute the overhead cost attributable to the OfficeMart orders | |||||||||||||
| Activity Cost Pools | Activity Rate | Activity | ABC Cost | ||||||||||
| Assembling units | $280 | per unit | 80 | units | $22,400 | ||||||||
| Processing orders | $1,240 | per order | 4 | orders | $4,960 | ||||||||
| Supporting customers | $1,000 | per customer | 1 | customer | $1,000 | ||||||||
| Determine the customer margin for the OfficeMart orders under Activity-Based Costing | |||||||||||||
| Sales | $ 47,600 | ||||||||||||
| Costs: | |||||||||||||
| Direct materials | $ 14,400 | ||||||||||||
| Direct labor | 4,000 | ||||||||||||
| Unit-related overhead | $22,400 | ||||||||||||
| Order-related overhead | $4,960 | ||||||||||||
| Customer-related overhead | $1,000 | $ 46,760 | |||||||||||
| Customer margin | $ 840 | ||||||||||||
| Determine the product margin for the OfficeMart orders under a traditional cost system | |||||||||||||
| Manufacturing overhead | $500,000 | ||||||||||||
| Total activity | 1,000 | units | |||||||||||
| Manufacturing overhead per unit | $500 | per unit | |||||||||||
| Sales | $ 47,600 | ||||||||||||
| Costs: | |||||||||||||
| Direct materials | $ 14,400 | ||||||||||||
| Direct labor | 4,000 | ||||||||||||
| Manufacturing overhead | 40,000 | 58,400 | |||||||||||
| Traditional costing product margin | $ (10,800) | ||||||||||||
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