Info in images(a) What is the customer margin under activity-based costing when the number of orders increases to 11? (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 11? (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.)check all that applyIf 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.unansweredIf 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.unansweredIf 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.unansweredIf 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. 2. Assume that OfficeMart places orders more frequently, but everything else remains the same. On your worksheet increase thenumber of orders from 4 to 11. (Prior to completing this requirement, change all worksheet figures back to their original amounts.)AВE1Chapter 7: Applying Excel23Data4Manufacturing overhead$500,000Selling and administrative overhead2$300,000AssemblingProcessingOrdersSupportingCustomers7OtherUnits8Manufacturing overhead50%35%5%10%Selling and administrative overhead10%45%25%20%10Total activity1,00025010011unitsorderscustomers1213OfficeMart orders:14Customers1 customer15Orders11 orders16Number of filing cabinets ordered in total80 units17 Selling price59518Direct materials2$18019Direct labor2$50%24 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

Customer Margin under Activity based costing = $ 7,640 Customer Margin under Traditional costing = $…

(a) What is the customer margin under activity-based costing when the number of orders increases to 11? (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 11? (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.) check all that apply 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.unanswered 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.unanswered 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.unanswered 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.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q