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How to calculate product margin using traditional costing system

29/04/2021 Client: muhammad11 Deadline: 2 Day

7/7/2019 Chapter 6 HW Saeed Alameri ACCT 285: SUMMER 2019 - ONLINE Chapter 6 HW instructions | help Follow the instructions to create your own worksheet version of the Review Problem in the text on pages 312–314. 1. value: Required information 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 “= 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 53 54 55 56 57 58 59 60 61 62 63 Determine the product margin for the OfficeMart orders under a traditional cost system Manufacturing overhead $ 500,000 Total activity 1,000 units Manufacturing overhead per unit $ 500 per unit Sales Costs: Direct materials Direct labor Manufacturing overhead Traditional costing product margin $ $ 47,600 $ 58,400 (10,800) 14,400 4,000 40,000 After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the numbers in the Review Problem. https://ezto.mheducation.com/hm.tpx?_=0.3912146360394474_1562482687249 1/6 7/7/2019 Chapter 6 HW Check your worksheet by doubling the units ordered in cell B16 to 160. The customer margin under activity-based 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. upload a response file (15MB max) download reference file ch_6_Noreen_4e_applying_excel_student_form.xlsx References 2. Choose File No file chosen eBook & Resources File Attachment Question Learning Objective: 06-01 Understand activity-based costing and how it differs from a traditional costing system. Learning Objective: 06-03 Compute activity rates for cost pools. Difficulty: 2 Medium Learning Objective: 06-02 Assign costs to cost pools using a first-stage allocation. Learning Objective: 06-04 Assign costs to a cost object using a second-stage allocation. value: 5.00 points https://ezto.mheducation.com/hm.tpx?_=0.3912146360394474_1562482687249 Required information 2/6 7/7/2019 Chapter 6 HW 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 24. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) A 1 2 3 4 5 6 Data Manufacturing overhead Selling and administrative overhead 7 8 9 10 11 12 13 14 15 16 17 18 19 20 B C D E Supporting Customers Other F Chapter 7: Applying Excel Manufacturing overhead Selling and administrative overhead Total activity OfficeMart orders: Customers Orders Number of filing cabinets ordered in total Selling price Direct materials Direct labor $500,000 $300,000 Assembling Units 50% 10% 1,000 units Processing Orders 35% 45% 250 orders 5% 25% 100 customers 10% 20% 1 customer 24 orders 80 units $595 $180 $50 (a) What is the customer margin under activity-based costing when the number of orders increases to 24? (Enter a loss as a negative amount.) https:

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