Download the Applying Excel form and enter formulas in all cells that contain question marks.
For example, in cell B26 enter the formula “= B4*B8”.
Note that the worksheet contains a section at the bottom titled “Determine the Product Margin Under a Traditional Cost System” that is not in the Review Problem. In this section, it is assumed that the traditional costing system allocates manufacturing overhead on the basis of the number of units produced. When completed, that part of the worksheet should contain the following results:
52 
Determine the product margin for the OfficeMart orders under a traditional cost system 

53 
Manufacturing overhead 
$ 
500,000 




54 
Total activity 

1,000 
units 



55 
Manufacturing overhead per unit 
$ 
500 
per unit 



56 







57 
Sales 

$ 
47,600 



58 
Costs: 






59 
Direct materials 
$ 
14,400 




60 
Direct labor 

4,000 




61 
Manufacturing overhead 

40,000 

58,400 


62 
Traditional costing product margin 


$ 
(10,800) 


63 







After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the numbers in the Review Problem.
Check your worksheet by doubling the units ordered in cell B16 to 160. The customer margin under activitybased 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.
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.
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  
Orders  4  orders  
Number of filing cabinets ordered in total  80  units  
Selling price  $595  
Direct materials  $180  
Direct labor  $50  
Enter a formula into each of the cells marked with a ? below  
Review Problem: ActivityBased Costing  
Perform the first stage allocations  
Assembling Units  Processing Orders  Supporting Customers  Other  Total  
Manufacturing overhead  ?  ?  ?  ?  ? 
Selling and administrative overhead  ?  ?  ?  ?  ? 
Total cost  ?  ?  ?  ?  ? 
Compute the activity rates  
Activity Cost Pools  Total Cost  Total Activity  Activity Rate  
Assembling units  ?  ?  units  ?  per unit 
Processing orders  ?  ?  orders  ?  per order 
Supporting customers  ?  ?  customers  ?  per customer 
Compute the overhead cost attributable to the OfficeMart orders  
Activity Cost Pools  Activity Rate  Activity  ABC Cost  
Assembling units  ?  per unit  ?  units  ? 
Processing orders  ?  per order  ?  orders  ? 
Supporting customers  ?  per customer  ?  customer  ? 
Determine the customer margin for the OfficeMart orders under ActivityBased Costing  
Sales  ?  
Costs:  
Direct materials  ?  
Direct labor  ?  
Unitrelated overhead  ?  
Orderrelated overhead  ?  
Customerrelated overhead  ?  ?  
Customer margin  ?  
Determine the product margin for the OfficeMart orders under a traditional cost system  
Manufacturing overhead  ?  
Total activity  ?  units  
Manufacturing overhead per unit  ?  per unit  
Sales  ?  
Costs:  
Direct materials  ?  
Direct labor  ?  
Manufacturing overhead  ?  ?  
Traditional costing product margin  ?  
Download the Applying Excel form and enter formulas in all cells that contain question marks. For...
CH 7 Applying Excel Instructions: 1. Update this spreadsheet with the appropriate formulas in the cells below with question marks. 2. Then, make a copy of the sheet in this same workbook and prepare Requirement 2 on page 340. Note: You can also make the changes suggested in Requirement 1, if you want, to check your worksheet the first time to make sure it works properly. Chapter 7: Applying Excel Page 339 Data Manufacturing overhead Selling and administrative overhead $500,000...
In need of the formulas that will be inputted into the excel sheet? Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell B26 enter the formula "B4B8". that is not in the Review Problem. In this section, it is assumed that the traditional costing system allocates manufacturing overhead on the basis of Note that the worksheet contains a section at the bottom titled "Determine the Product Margin Under a Traditional...
Clipboard Font Alignment Number B27 Xv fx ? CD 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead $500,000 $300,000 5% 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity Assembling Processing Supporting Units Orders Customers 50% 35% 10% 45% 25% 1,000 250 100 units orders customers Other 10% 20% 12 13 OfficeMart orders: 14 Customers 1 customer 15 Orders 4 orders 16 Number of filing cabinets ordered in total 80...
solving the "?"s Data Manufacturing overhead Selling and administrative overhead $500,000 $300,000 Manufacturing overhead Selling and administrative overhead Total activity Assemblin Processing Supporting g Units Orders Customer 50% 35% 5% 10% 45% 25% 1,000 250 100 units orders customers Other 10% 20% OfficeMart orders: Customers Orders red in total Number of filing cabinets ordered in total Selling price Direct materials Direct labor 1 customer 4 orders 80 units $595 $180 $50 Enter a formula into each of the cells marked...
330 Chapter 2 A 1 Chapter Applying Excel Data Manufacturing whead Selling and administrative overhead Dat Ma Sel $500.000 5300.000 Assembling Processing Supporting Orders Customers 50% 5% 10% 45% 25% 1 000 250 100 orders customers Other 10% 20% Ma Sel Tot 8 Manufacturing overhead Selling and administrative overhead 10 Total activity 11 12 13 OfficeMart oders 1 customer 14 Customers 4 orders 15 Orders 16 Number of filing cabinets ordered in total 80 units 17 Selling price $595 18...
A cut Copy  Format Painter Clipboard 10 AA EE a. A BIU Wrap Text Merge & Center  E Accounting $  %, 85 Alignment Number B27  B DE F 1 Chapter 7: Applying Excel 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 $500,000 $300,000 Assembling Processing Units Orders 50% 35% 10% 45% 1.000 units orders 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 Supporting Customers 5% 25% 100 customers Other...
Follow the instructions to create your own worksheet version of the Review Problem in the text on pages 312 value: 0.00 points Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell B26 enter the formula  B4B8". Note that the worksheet contains a section at the bottom titled "Determine the Product Margin Under a Tradition overhead on the basis of the number of units produced. When completed, that part of...
3. OfficeMart has found an error in its data. The percentage of selling and administrative overhead attributable to processing orders should be changed to 35% from 45% and the percentage attributable to supporting customers should be changed to 35% from 25%. B C D E F 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 $500,000 $300.000 7 Assembling Units 50% 10% 1.000 units Processing Orders 35% 35% 250 orders Supporting Customers...
A B C D E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 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% 25% 45% 20% Total activity 1,000 250 100 units orders customers OfficeMart orders: Customers 1 customer Orders 16 orders Number of filing cabinets ordered in...
Download the Applying Excel form and enter formulas in all cells that contain question markS. For example, in cell C18 enter the formulaB6". After entering formulas in all of the cells that contained question marks, verify that the dollar amounts in both the traditional and contribution format income statements match the numbers in Exhibit 17 Check your worksheet by changing the variable selling cost in the Data area to $900, keeping all of the other data the same as in...
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