Please help! I will give a thumbs up if someone can help me. Thank you! :) (a) Based on new number of orders in Requirement 2, what is the customer margin under activity-based costing when the data are corrected? (Enter a loss as a negative amount.) Customer margin under activity-based costing[ ](b) Based on new number of orders in Requirement 2, what is the product margin under the traditional costing system when the data are corrected? (Enter a loss as a negative amount.) Product margin under the traditional costing system[ ] (c) Which of the following statements are true about what happens when the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount? (You may select more than one answer.)check all that apply When the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount, costs are shifted from the processing orders cost pool to the supporting customers cost pool.When the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount, costs will be shifted from customers who order more frequently to those who order less frequently.When the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount, the customer margins of those who order more frequently will increase relative to the customer margins of those who order less frequently. 1 Chapter 7: Applying Excel23 Data4 Manufacturing overhead5 Selling and administrative overhead$500,000$300,0006.Assembling Processing SupportingUnits7OrdersCustomersOther8 Manufacturing overhead9 Selling and administrative overhead10 Total activity50%35%5%10%10%1,00045%25%20%25010011unitsorderscustomers1213 OfficeMart orders:14 Customers15 Orders16 Number of filing cabinets ordered in total17 Selling price18 Direct materials19 Direct labor1 customer4 orders160 units$595$180$502021 Enter a formula into each of the cells marked with a ? below22 Review Problem: Activity-Based Costing2324 Perform the first stage allocationsAssembling Processing SupportingUnits$ 250,00025OrdersCustomersOtherTotal$ 175,000$ 500,00026 Manufacturing overhead27 Selling and administrative overhead28 Total cost30,000$ 280,000 $ 310,000###HHHH# $ 50,00075.000$ 100,000135.00060,000300.000$110,000$ 800,0002930 Compute the activity rates31 Activity Cost Pools32 Assembling units33 Processing orders34 Supporting customersTotal ActivityActivity Rate$280 per unit$1,240 per order$1,000 per customerTotal Cost$ 280,000$ 310,000$ 100,0001,000 units250 orders100 customers3536 Compute the overhead cost attributable to the OfficeMart orders37 Activity Cost PoolsАВС CostActivity160 units38 Assembling units39 Processing orders40 Supporting customersActivity Rate$280 per unit$1,240 per order$1,000 per customer$44,800$4,960$1,0004 orders1 customer4142 Determine the customer margin for the OfficeMart orders under Activity-Based Costing43 Sales$95,20044 Costs:45Direct materials$ 28.80046 Direct labor8,00044,80047Unit-related overhead48Order-related overhead4.96049 Customer-related overhead1.00087.56050 Customer margin$7,6405152 Determine the product margin for the OfficeMart orders under a traditional cost system53 Manufacturing overhead54 Total activity$500,0001,000 units55 Manufacturing overhead per unit$500 per unit5657 Sales$95,20058 Costs:Direct materials60 Direct labor59$28,8008,00080,00061 Manufacturing overhead62 Traditional costing product margin(116,800)$ (21,600)63 3. OfficeMart has found an error in its data. The percentage of selling and admınistrative overhead attributable to processing ordersshould be changed to 35% from 45% and the percentage attributable to supporting customers should be changed to 35% from 25%.A1Chapter 7: Applying Excel2Data4Manufacturing overhead2$500,0005Selling and administrative overhead$300,0006.AssemblingUnitsProcessingOrdersSupportingCustomers7Other8Manufacturing overhead50%35%5%10%9.Selling and administrative overhead10%35%35%20%10Total activity1,00025010011unitsorderscustomers1213 OfficeMart orders:14Customers1 customer15Orders11 orders16 Number of filing cabinets ordered in total80 units17 Selling price$59518Direct materials$18019Direct labor50

ABC stands for Activity based costing which is the method that assigns the overhead as well as…

Answered: (a) Based on new number of orders in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Please help! I will give a thumbs up if someone can help me. Thank you! :)

(a) Based on new number of orders in Requirement 2, what is the customer margin under activity-based costing when the data are corrected? (Enter a loss as a negative amount.)

Customer margin under activity-based costing

[ ]

(b) Based on new number of orders in Requirement 2, what is the product margin under the traditional costing system when the data are corrected? (Enter a loss as a negative amount.)

Product margin under the traditional costing system

[ ]

(c) Which of the following statements are true about what happens when the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount? (You may select more than one answer.)

check all that apply

When the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount, costs are shifted from the processing orders cost pool to the supporting customers cost pool.
When the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount, costs will be shifted from customers who order more frequently to those who order less frequently.
When the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount, the customer margins of those who order more frequently will increase relative to the customer margins of those who order less frequently.

1 Chapter 7: Applying Excel
2
3 Data
4 Manufacturing overhead
5 Selling and administrative overhead
$500,000
$300,000
6.
Assembling Processing Supporting
Units
7
Orders
Customers
Other
8 Manufacturing overhead
9 Selling and administrative overhead
10 Total activity
50%
35%
5%
10%
10%
1,000
45%
25%
20%
250
100
11
units
orders
customers
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
1 customer
4 orders
160 units
$595
$180
$50
20
21 Enter a formula into each of the cells marked with a ? below
22 Review Problem: Activity-Based Costing
23
24 Perform the first stage allocations
Assembling Processing Supporting
Units
$ 250,000
25
Orders
Customers
Other
Total
$ 175,000
$ 500,000
26 Manufacturing overhead
27 Selling and administrative overhead
28 Total cost
30,000
$ 280,000 $ 310,000
###HHHH# $ 50,000
75.000
$ 100,000
135.000
60,000
300.000
$110,000
$ 800,000
29
30 Compute the activity rates
31 Activity Cost Pools
32 Assembling units
33 Processing orders
34 Supporting customers
Total Activity
Activity Rate
$280 per unit
$1,240 per order
$1,000 per customer
Total Cost
$ 280,000
$ 310,000
$ 100,000
1,000 units
250 orders
100 customers
35
36 Compute the overhead cost attributable to the OfficeMart orders
37 Activity Cost Pools
АВС Cost
Activity
160 units
38 Assembling units
39 Processing orders
40 Supporting customers
Activity Rate
$280 per unit
$1,240 per order
$1,000 per customer
$44,800
$4,960
$1,000
4 orders
1 customer
41
42 Determine the customer margin for the OfficeMart orders under Activity-Based Costing
43 Sales
$
95,200
44 Costs:
45
Direct materials
$ 28.800
46 Direct labor
8,000
44,800
47
Unit-related overhead
48
Order-related overhead
4.960
49 Customer-related overhead
1.000
87.560
50 Customer margin
$
7,640
51
52 Determine the product margin for the OfficeMart orders under a traditional cost system
53 Manufacturing overhead
54 Total activity
$500,000
1,000 units
55 Manufacturing overhead per unit
$500 per unit
56
57 Sales
$
95,200
58 Costs:
Direct materials
60 Direct labor
59
$
28,800
8,000
80,000
61 Manufacturing overhead
62 Traditional costing product margin
(116,800)
$ (21,600)
63

3. OfficeMart has found an error in its data. The percentage of selling and admınistrative 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%.
A
1
Chapter 7: Applying Excel
2
Data
4
Manufacturing overhead
2$
500,000
5
Selling and administrative overhead
$
300,000
6.
Assembling
Units
Processing
Orders
Supporting
Customers
7
Other
8
Manufacturing overhead
50%
35%
5%
10%
9.
Selling and administrative overhead
10%
35%
35%
20%
10
Total activity
1,000
250
100
11
units
orders
customers
12
13 OfficeMart orders:
14
Customers
1 customer
15
Orders
11 orders
16 Number of filing cabinets ordered in total
80 units
17 Selling price
$
595
18
Direct materials
$
180
19
Direct labor
50

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