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 15. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) 1 Chapter 5: Applying Excel 2 3 4 Manufacturing overhead 5 Selling and administrative overhead 6 7 Data 8 Manufacturing overhead 9 10 11 Selling and administrative overhead Total activity 12 13 OfficeMart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor $ $ 500,000 300.000 Assembling Processing Units Orders $ $ $ 50% 10% 1,000 units 1 customer 15 orders 30 units 596 100 50 35% 45% 250 orders Supporting Customers 5% 25% 100 customers Other 10% 20%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QC 16.

(0) What is the customer margin under activity-based costing when the number of orders increases to 15? (Enter a loss as a negative
amount.)
Customer margin under activity-based costing
(b) What is the product margin under the traditional costing system when the number of orders increases to 15? (Enter a loss as a
negative amount.)
Product margin under the traditional costing system
(c) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mark
to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong
answer. Any boxes left with a question mark will be automatically graded as incorrect.)
>
If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under
activity based costing will decrease
If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a
traditional costing system will decrease
If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under
activity based costing will be unaffected
If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a
traditional costing system will be unaffected
6
Transcribed Image Text:(0) What is the customer margin under activity-based costing when the number of orders increases to 15? (Enter a loss as a negative amount.) Customer margin under activity-based costing (b) What is the product margin under the traditional costing system when the number of orders increases to 15? (Enter a loss as a negative amount.) Product margin under the traditional costing system (c) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) > If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will decrease If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will be unaffected If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected 6
int
rences
Ac
raw
Required information.
The Chapter 5 Form worksheet is to be used to create your own worksheet version of the Review Problem for Activity
Based Costing found in the text (include a link of the problem)
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 15. (Prior to completing this requirement, change all worksheet figures back to their original amounts.)
A
1 Chapter 5: Applying Excel
2
3
4 Manufacturing overhead
5 Selling and administrative overhead
6
7
Data
8 Manufacturing overhead
9
10
Selling and administrative overhead
Total activity
12
13 OfficeMart orders
14 Customers
15 Orders
16 Number of filing cabinets ordered in total
17 Selling price
18 Direct materials
19
Direct labor
B
$ 500,000
$ 300,000
Assembling
Units
$
$
$
50%
10%
1,000
units
C
Processing
Orders
1 customer
15 orders
30 units
595
100
50
35%
45%
250
orders
D
Supporting
Customers
5%
25%
100
customers
< Prev
Other
8
3
10%
20%
of 4
Next >
Transcribed Image Text:int rences Ac raw Required information. The Chapter 5 Form worksheet is to be used to create your own worksheet version of the Review Problem for Activity Based Costing found in the text (include a link of the problem) 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 15. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) A 1 Chapter 5: Applying Excel 2 3 4 Manufacturing overhead 5 Selling and administrative overhead 6 7 Data 8 Manufacturing overhead 9 10 Selling and administrative overhead Total activity 12 13 OfficeMart orders 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor B $ 500,000 $ 300,000 Assembling Units $ $ $ 50% 10% 1,000 units C Processing Orders 1 customer 15 orders 30 units 595 100 50 35% 45% 250 orders D Supporting Customers 5% 25% 100 customers < Prev Other 8 3 10% 20% of 4 Next >
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