Question

Activity Based Costing 1 Chapter 3: Applying Excel Fra formulato each of the cols marked when Review Problem. Activity Based Couting 6 Data Annual sales in units 9 Direct materials per unit 10 Direct labor hours per unit 2000 Tourist 10 000 $25 517 12 Direct labor rate 512 per DUH Overhead Expected Activity 16 Activities and Activity Measures 17 Labor-related (direct labor hours) 19 Machine setups (setups) 19 Production orders (orders) 20 General factory (machine hours) $ 80.000 150.000 70.000 250 000 3000 2000 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 overhead rate (a) (b) 7 DLHS ? per DLH 28 Compute the manufacturing overhead applied 29 Direct labor-hours per unit(a) 30 Predetermined overhead rate (b) 31 Manufacturing overhead applied per unit(a) ( Deluxe 7 DLHS 7 per DLH 7 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 39 Compute activity rates Estimated Overhead Cost 41 Activites 42 Labor-related 43 Machine setups 44 Production orders 45 General factory Total Expected Activity 2 DLHS 7 setups 7 orders 7 MHS Activity Rate 7 per DLH ? per setup ? per order 7 per MH 47 Compute the ABC overhead cost per unit Activity Rate Deluxe Expected Activity Amount Tounst Expected Activity Amount 49 Activities 50 Labor-related 51 Machine setups 52 Production orders 53 General factory S4 Total overhead cost assigned (a) 55 Number of units produced (b) 56 ABC overhead cost per unit (a) (b) 58 Compute the ABC unit product costs 59 Direct materials 60 Direct labor 61 ABC overhead cost per unit (see above) 62 ABC unit product cost Delane Tounsi # Chapter 3 Form Chapter

Answer 1

Solution:

Formulas used:

Data Delux Annual Sales in units Direct Matreial per unit Direct Labor-hours per unit 2000 25 5 Tourist 10000 17 $ Direct Labor Rate 12 per DLH Activities and Activity Measures Labor-related (Direct Labor Hours) Machine setups (setups) Production orders (Orders) General Factory (Machine Hours) Estimated Overhead Cost $ 80,000 $ 1,50,000 $ 70,000 $ 2,50,000 $ 5,50,000 Expected Activity Delux Tourist 10,000 40,000 3,000 2,000 100 300 12,000 28,000 Total 50,000 5,000 400 40,000 $ Compute the predetermined Overhead Rate Estimated total manufacturing overhead (a) Estimated total amount of allocation base (b) Predetermined Overhead Rate (a)/(b) 5,50,000 50,000 DLHS 11 per DLH $ Compute Manufacturing overhead applied Direct labor hours per unit (a) Predetermined Oerhead rate (b) Manufacturing Overhead applied per unit (a) * (b) Delux 5 DLHs 11 per DLH Tourist 4 DLHS 11 per DLH 44 $ 55 Tourist 17 Compute traditional Unit product Cost Direct Materials Direct Labor Manufacturing Overhead applied Traditional Unit Product Cost uusi Delux 25 $ 60 $ 55 $ 140 $ Compute Activity Rates Activities Labor-related Machine Setups Production orders General Factory Estimated Overhead Costs $ 80,000 $ 1,50,000 70,000 $ 2,50,000 al Expected Activity 50,000 DLHS 5,000 setups 400 orders 40,000 MHs Activity Rate 1.60 per DLH 30.00 per setup 175.00 per order 6.25 per MH Compute ABC Overhead Cost per unit 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) Activity Rate 1.60 30.00 175.00 6.25 Delux Expected Activity Amount 10,000 $ 16,000 3,000 $ 90,000 100 $ 17,500 12,000 $ 75,000 $ 1,98,500 2,000 99.25 Tourist Expected Activity Amount 40,000 $ 64,000 2,000 $ 60,000 300 $ 52,500 28,000 $ 1,75,000 $ 3,51,500 10,000 35.15 $ $ Tourist 17 Compute the ABC unit product Cost Direct Materials Direct Labor ABC overhead cost per unit ABC unit product cost Delux 25 60 99.25 184 $ $ $ $ 48 35.15 100

Data Delux TOU Tourist 2000 10000 Annual Sales in units Direct Matreial per unit Direct Labor-hours per unit 25 $ 5 Direct Labor Rate 12 per DLH Activities and Activity Measures Labor-related (Direct Labor Hours) Machine setups (setups) Production orders (Orders) General Factory (Machine Hours) Estimated Overhead Cost Delux 80,000 (=B10*B8) 1,50,000 70,000 2,50,000 (=SUM(B17:B20)) Expected Activity Tourist Total (=C10*С8) (=C17+D17) 3,000 2,000 (=C18+D18) 100 300 (=C19+D19) 12,000 28,000 (=C20+D20) 70,000 100 300 EC19029 Compute the predetermined Overhead Rate Estimated total manufacturing overhead (a) Estimated total amount of allocation base (b) Predetermined Overhead Rate (a)/(b) 821) (=B21) (=E17) (=C24/C25) DLHs per DLH (=B10) Compute Manufacturing overhead applied Direct labor hours per unit (a) Predetermined Oerhead rate (b) Manufacturing Overhead applied per unit (a) * (b) Delux DLHS per DLH Tourist (=C10) DLHs (=C26) per DLH (=D29D30) (=C26) (=B29*B30) Compute traditional Unit product Cost Direct Materials Direct Labor Manufacturing Overhead applied Traditional Unit Product Cost Delux (=B9) (=B10*B12) (=B31) (=SUM(B34:B36)) Tourist (=C9) (=C10*B12) (=D31) (=SUM(C34:C36)) Compute Activity Rates Activities Labor-related Machine Setups Production orders General Factory Estimated Overhead Costs (=B17) (=B18) (=B19) (=B20) Total Expected Activity (=E17) (=E18) (=E19) (=E20) DLHs setups orders MHs Activity Rate (=B42/C42) per DLH (=B43/C43) per setup (=B44/C44) per order (=B45/C45) per MH Compute ABC Overhead Cost per unit Delux Tourist Activity Rate (=E42) (=E43) (=E44) (=E45) Expected Activity (=C17) (=C18) (=C19) 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) Amount (=B50*C50) (=B51*C51) (=B52*C52) (=B53*C53) (=SUM(D50:D53)) (=B8) (=D54/D55) Expected Activity (=D17) (2018) (=D19) (=D20) Amount (=B50*E50) (=B51*E51) (=B52*E52) (=B53*E53) (=SUM(F50:F53)) (=C8) (=F54/F55) (=C20) Compute the ABC unit product Cost Direct Materials Direct Labor ABC overhead cost per unit ABC unit product cost Delux (=B9) (=B10*B12) (=D56) (=SUM(B59:B61)) Tourist (=C9) (=C10*B12) (=F56) (=SUM(C59:C61))

Notes:

1. It was not possible to tale a screenshot of excel file. So I have converted excel into jpeg .
2. The formula image contains the formulas you need to apply to get the desired results. Please note that the formulas are put inside a () bracket. So remove the outside bracket and formula is ready for use.
3. The solution image represents the solution that you will get after applying the formulas.
4. I have used the same cell reference as provided in your sheet. So you can copy the formulas as it is without changing for cell reference.