Applying Excel Managerial Accounting
Chapter 4: Applying Excel Enter a formula into each of the cells marked with a ? below Review Problem: Activity-Based Costing
Data
Deluxe 2,000 $25 5
Tourist 10,000 $17 4
Annual sales in units Direct materials per unit 10 Direct labor-hours per unit 11 12 Direct labor rate 13 14 15 16 Activities and Activity Measures 17 Labor-related (direct labor-hours) 18 Machine setups (setups) 19 Production orders (orders) 20 General factory (machine-hours) 21 22 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) 27 28 Compute the manufacturing overhead applied 29 Direct labor-hours per unit (a) 30 Predetermined overhead rate (b) 31 Manufacturing overhead applied per unit ax (b) 32 33 Compute traditional unit product costs 34 Direct materials 35 Direct labor 36 Manufacturing overhead applied 37 Traditional unit product cost 38 39 Compute activity rates 40 41 Activities 42 Labor-related 43 Machine setups 44 Production orders 45 General factory 46 47 Compute the ABC overhead cost per unit 48
$12 per DLH
Estimated Overhead Cost $80,000 $150,000 $70,000 $250,000 ?
Expected Activity Deluxe Tourist Total ? ? ? 3,000 2,000 ? 100 300 ? 12,000 28,000 ?
+
DLHs per DLH
Tourist DLHs per DLH ?
DLHs per DLH
Deluxe ? ? ? ?
Tourist ? ? ? ?
Estimated Overhead Cost
Total Expected Activity DLHs setups orders MHs
Activity Rate per DLH per setup per order per MH
Deluxe expected
Tourist expected
Activity
