Chapter_5_Applying_Excel.xls
Chapter 5: Applying Excel
Data
Selling price per unit $50
Manufacturing costs:
Variable per unit produced:
Direct materials $11
Direct labor $6
Variable manufacturing overhead $3
Fixed manufacturing overhead per year $120,000
Selling and administrative expenses:
Variable per unit sold $4
Fixed per year $70,000
Year 1 Year 2
Units in beginning inventory 0
Units produced during the year 10,000 6,000
Units sold during the year 8,000 8,000
Enter a formula into each of the cells marked with a ? below
Review Problem 1: Contrasting Variable and Absorption Costing
Chapter_5_Applying_Excel.xls
Variable selling and administrative expenses ? ? ? ?
Contribution margin ? ?
Fixed expenses:
Fixed manufacturing overhead ? ?
Fixed selling and administrative expenses ? ? ? ?
Net operating income ? ?
Page 2
Variable cost of goods sold 160,000$ $160,000
Variable selling and administrative expenses 32,000 192,000 32,000 192,000
Contribution margin 208,000 208,000
Fixed expenses:
Fixed manufacturing overhead 120,000 120,000
Fixed selling and administrative expenses 70,000 190,000 70,000 190,000
Net operating income 18,000$ 18,000$
Page 4
Chapter_5_Applying_Excel.xls
Variable selling and administrative expenses =B12*B18
Contribution margin
Fixed expenses:
Fixed manufacturing overhead =B10
Fixed selling and administrative expenses =B13
Net operating income
