a). Activity-based costing
Cost allocation:
Accounting units | Processing units | Supporting customers | Other | Total | |
Manufacturing | 250000 | 175000 | 25000 | 50000 | 500000 |
S&A | 30000 | 90000 | 120000 | 60000 | 300000 |
Total | 280000 | 265000 | 145000 | 110000 | 800000 |
Activity rates
Assembling units = 280000 / 1,000 units = $280 per unit
Processing orders = 265000 / 250 orders = $1060 per order
Supporting customers = 145000 / 100 customers = $1450 per
customer
Sales(80 x 595) | 47600 |
Costs: Direct material(80 x 180) | 14400 |
Direct Labor(80 x 50) | 4000 |
Assembling units(80 x 280) | 22400 |
Processing units(23 x 1060 per) | 24380 |
Supporting documents(1 x 1450) | 1450 |
Activity-based consumer margin | (19030) |
b) Traditional based
Manufacturing Overhead per unit = 500000 / 1000 orders = 500 per unit
Sales(80 x 595) | 47600 |
Costs: Direct material(80 x 180) | 14400 |
Direct Labor(80 x 50) | 4000 |
Manufacturing overheads(80 x 500) | 40000 |
Activity-based consumer margin | (10800) |
c) All Statements are true
3 Data 4 $ Manufacturing overhead Selling and administrative overhead 500,000 300,000 5 $ 6 7...
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...
1 сарег Т.Аррупу Excel 2 3 Data 4 $ Manufacturing overhead Selling and administrative overhead 500,000 300,000 5 $ 6 7 Other Assembling Units 50% Processing Orders 35% Supporting Customers 5% 10% 10% 45% 25% 20% 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 250 100 1,000 units orders customers 12 13 OfficeMart orders: 14 Customers 1 customer 23 orders 80 units 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18...
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...
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...
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...
2. Assume that OfficeMart places orders more frequently, but everything else remains the same. On your worksheet increase the number of orders from 4 to 20. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) 1 Chapter 7: Applying Excel 3 4 5 Data Manufacturing overhead Selling and administrative overhead $ $ 500,000 300,000 Other 8 9 10 Manufacturing overhead Selling and administrative overhead Total activity Assembling Units 50% 10% 1,000 units Processing Orders 35%...
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...
2. Assume that Office Mart places orders more frequently, but everything else remains the same. On your worksheet increase the number of orders from 4 to 13. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) B с D E F A 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 $500,000 $300.000 7 Assernbling Units 50% 10% 1,000 units Processing Orders 35% 45% 250 orders Supporting...
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...