(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 negotive omount) Custemer margin under activity tased costing$(7,700) (a) What is the customer margin under activity-based costing when the number of orders increases to 15? (Enter a loss as a negativeamount.)Customer margin under activity-based costing $ (7.700) 4567Manufacturing overheadSelling and administrative overhead8 Manufacturing overhead910 Total activity11Selling and administrative overhead121314 Customers15 Orders16 Number of filing cabinets ordered in total17OfficeMart orders:Selling price18 Direct materials19 Direct labor$$AssemblingUnits$$S500,000300,0001050%10%1,000unitsProcessingOrders1 customer15 orders80 units5951805035%45%250ordersSupportingCustomers5%25%100customersOther10%20%

Activity-based costing (ABC) is a costing method that identifies and assigns costs to cost objects…

Answered: (a) What is the customer margin under…

(a) 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 $ (7,700)

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

(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 negotive omount) Custemer margin under activity tased costing

$(7,700)

(a) 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 $ (7.700)

4567
Manufacturing overhead
Selling and administrative overhead
8 Manufacturing overhead
9
10 Total activity
11
Selling and administrative overhead
12
13
14 Customers
15 Orders
16 Number of filing cabinets ordered in total
17
OfficeMart orders:
Selling price
18 Direct materials
19 Direct labor
$
$
Assembling
Units
$
$
S
500,000
300,000
10
50%
10%
1,000
units
Processing
Orders
1 customer
15 orders
80 units
595
180
50
35%
45%
250
orders
Supporting
Customers
5%
25%
100
customers
Other
10%
20%

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(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 [ ] I got $7,640 but it was not correct :( (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 [ ] I got $(21,600) but it was not correct. :( (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. 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…