Question

please write the formuals in this format for example : =B2+C6 and so on,.... use the cell number and letters that are showen in the picture. dont change the numbers and letters please! thank you

1. Assign indirect costs to products or services using activity based costing ORS. de compreher services using activity and contieg - Excel Σ AutoSuri Conditional Format Formaning Table Ce Styles Insert Delete Format Sort & Find & ed $710.000 in total overhead cost to four different activity cost pools. The activity requirements for its two products lines, Economy a n d $710,000 in total overhead cost to four different activity cost pools. The activity requirements for its two products lines, Economy and Deluxe, are shown below s may vary for each costo depending on whers are known and unknown Activity Requirements by Product Line P roportion Activity ortion Del Model Activity Cost Drive Activity Cost Pool Material Handling Machine Set-Ups Engineering Support Overhead Cost 300,000 $ 210.000 Use formulat e d to each product using both activity rates and activity proportion statements to verify that the two os produce the same result owhead Assed using Activity Overhead Assigned Using Activity Proportions ) Verification: Create then statements to determine if the two methods produce identical results by indicating passorail Economy Deluxe Total

Answer 1

Activity Cost Pool	Overhead Cost	Activity Cost Driver		Activity Rate		Economy Model	Activity Proportion	Deluxe	Proportion
Material Handling	$      3,00,000	5000	Material Moves	$   60.00	per move	2000	40%	3000	60%
Machine Setups	$      2,10,000	1200	Setups	$ 175.00	per setup	300	25%	900	75%
Engineering Support	$      1,25,000	10000	hours	$   12.50	per hour	2000	20%	8000	80%
Power and Space	$          75,000	20000	square feet	$      3.75	per sq. ft.	10000	50%	10000	50%
Total Overhead Cost	$      7,10,000
	Using Activity Rates				Using Activity Proportion
Activity Cost Pool	Economy	Deluxe	Total		Economy	Deluxe	Total		Economy	Deluxe	Total
Material Handling	$      1,20,000	$      1,80,000	$             3,00,000		$ 1,20,000	$ 1,80,000	$ 3,00,000		PASS	PASS	PASS
Machine Setups	$          52,500	$      1,57,500	$             2,10,000		$    52,500	$ 1,57,500	$ 2,10,000		PASS	PASS	PASS
Engineering Support	$          25,000	$      1,00,000	$             1,25,000		$    25,000	$ 1,00,000	$ 1,25,000		PASS	PASS	PASS
Power and Space	$          37,500	$         37,500	$                75,000		$    37,500	$    37,500	$     75,000		PASS	PASS	PASS
Total Overhead Cost	$      2,35,000	$      4,75,000	$             7,10,000		$ 2,35,000	$ 4,75,000	$ 7,10,000		PASS	PASS	PASS

Formulas

Activity Cost Pool	Overhead Cost	Activity Cost Driver		Activity Rate		Economy Model	Activity Proportion	Deluxe	Proportion
Material Handling	300000	5000	Material Moves	=B5/C5	per move	2000	=G5/C5	3000	=I5/C5
Machine Setups	210000	=G6+I6	Setups	=B6/C6	per setup	300	=G6/C6	900	=I6/C6
Engineering Support	=C7*E7	=G7/H7	hours	12.5	per hour	2000	0.2	=C7-G7	=I7/C7
Power and Space	=B9-B5-B6-B7	20000	square feet	=B8/C8	per sq. ft.	=C8*H8	0.5	=C8-G8	=I8/C8
Total Overhead Cost	710000
	Using Activity Rates				Using Activity Proportion
Activity Cost Pool	Economy	Deluxe	Total		Economy	Deluxe	Total		Economy	Deluxe	Total
Material Handling	=G5*E5	=I5*E5	=B15+C15		=B5*H5	=B5*J5	=F15+G15		=IF(B15=F15,"PASS","FAIL")	=IF(C15=G15,"PASS","FAIL")	=IF(D15=H15,"PASS","FAIL")
Machine Setups	=G6*E6	=I6*E6	=B16+C16		=B6*H6	=B6*J6	=F16+G16		=IF(B16=F16,"PASS","FAIL")	=IF(C16=G16,"PASS","FAIL")	=IF(D16=H16,"PASS","FAIL")
Engineering Support	=G7*E7	=I7*E7	=B17+C17		=B7*H7	=B7*J7	=F17+G17		=IF(B17=F17,"PASS","FAIL")	=IF(C17=G17,"PASS","FAIL")	=IF(D17=H17,"PASS","FAIL")
Power and Space	=G8*E8	=I8*E8	=B18+C18		=B8*H8	=B8*J8	=F18+G18		=IF(B18=F18,"PASS","FAIL")	=IF(C18=G18,"PASS","FAIL")	=IF(D18=H18,"PASS","FAIL")
Total Overhead Cost	=B15+B16+B17+B18	=C15+C16+C17+C18	=B19+C19		=F15+F16+F17+F18	=G15+G16+G17+G18	=F19+G19		=IF(B19=F19,"PASS","FAIL")	=IF(C19=G19,"PASS","FAIL")	=IF(D19=H19,"PASS","FAIL")