Panel A Statement of Operating Income [External Reporting Purpose] vity Based Cost Allocation System Panel B Contribution to Corporate Costs and Profit [Internal Strategic Decision-Making and Operational-Control Purposes] Pen Casings 480000 360000 Cell Phone Casing Sales 120000 Cost of goods sold: Direct material 44100 22500 21600 Direct labor 150000 135000 15000 Process activity 143000 114400 28600 77000 19250 57750 Production-support activity 414100 302220 111880 Cost of goods sold 65900 57780 8120 Gross profit (deficit) 75000 Corporate expenses (unallocated) 9100 Operating loss Gross profit margin 13.73 % 16.05% 6.77 % What would be the most likely level of support for the controller's idea by the product managers of the pen casing product line and the cell phone casing product line? (Use a minus sign or parentheses for deficits. Round the increase am ABC Increase/Decrease in GP% Support of Product Manager Cell-Phone Casing Pen Casing % Strong 6.58 None % What would be the level of support by the president? (Leave unused cells blank.) The president's support will most likely be strong The president will gain confidence in the accuracy of th most data because they agree with her analysis The president will gain confidence in the accuracy of the cost data because they agree with her analysis. There is not strong evidence of improvement in profitability. liable provide relevant information for operational control. Does the new ABC system satis and thus probably represents a sound cause-effect model of operations. T There is strong evidence of improvement in profitability. There will not be unanimous support among product managers. There will be better support among product managers.
Panel A Statement of Operating Income [External Reporting Purpose] vity Based Cost Allocation System Panel B Contribution to Corporate Costs and Profit [Internal Strategic Decision-Making and Operational-Control Purposes] Pen Casings 480000 360000 Cell Phone Casing Sales 120000 Cost of goods sold: Direct material 44100 22500 21600 Direct labor 150000 135000 15000 Process activity 143000 114400 28600 77000 19250 57750 Production-support activity 414100 302220 111880 Cost of goods sold 65900 57780 8120 Gross profit (deficit) 75000 Corporate expenses (unallocated) 9100 Operating loss Gross profit margin 13.73 % 16.05% 6.77 % What would be the most likely level of support for the controller's idea by the product managers of the pen casing product line and the cell phone casing product line? (Use a minus sign or parentheses for deficits. Round the increase am ABC Increase/Decrease in GP% Support of Product Manager Cell-Phone Casing Pen Casing % Strong 6.58 None % What would be the level of support by the president? (Leave unused cells blank.) The president's support will most likely be strong The president will gain confidence in the accuracy of th most data because they agree with her analysis The president will gain confidence in the accuracy of the cost data because they agree with her analysis. There is not strong evidence of improvement in profitability. liable provide relevant information for operational control. Does the new ABC system satis and thus probably represents a sound cause-effect model of operations. T There is strong evidence of improvement in profitability. There will not be unanimous support among product managers. There will be better support among product managers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
pick the support of the product manager and president. Also provide the reasons from the dropdown
![Panel A
Statement of Operating Income
[External Reporting Purpose]
vity Based Cost Allocation System
Panel B
Contribution to Corporate Costs and Profit
[Internal Strategic Decision-Making and
Operational-Control Purposes]
Pen Casings
480000
360000
Cell Phone Casing
Sales
120000
Cost of goods sold:
Direct material
44100
22500
21600
Direct labor
150000
135000
15000
Process activity
143000
114400
28600
77000
19250
57750
Production-support activity
414100
302220
111880
Cost of goods sold
65900
57780
8120
Gross profit (deficit)
75000
Corporate expenses (unallocated)
9100
Operating loss
Gross profit margin
13.73 %
16.05%
6.77 %
What would be the most likely level of support for the controller's idea by the product managers of the pen casing product line and the cell phone casing product line? (Use a minus sign or parentheses for deficits. Round the increase am
ABC
Increase/Decrease in GP%
Support of Product Manager
Cell-Phone
Casing
Pen
Casing
%
Strong
6.58
None
%
What would be the level of support by the president? (Leave unused cells blank.)
The president's support will most likely be strong
The president will gain confidence in the accuracy of th most data because they agree with her analysis
The president will gain confidence in the accuracy of the cost data because they agree with her analysis.
There is not strong evidence of improvement in profitability.
liable
provide relevant information for operational control. Does the new ABC system satis
and thus probably represents a sound cause-effect model of operations. T
There is strong evidence of improvement in profitability.
There will not be unanimous support among product managers.
There will be better support among product managers.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a41c3c7-2600-484b-827b-a120d7f7011a%2Fb9a0f419-1294-416a-9021-9892435259f7%2Fsfgmdd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Panel A
Statement of Operating Income
[External Reporting Purpose]
vity Based Cost Allocation System
Panel B
Contribution to Corporate Costs and Profit
[Internal Strategic Decision-Making and
Operational-Control Purposes]
Pen Casings
480000
360000
Cell Phone Casing
Sales
120000
Cost of goods sold:
Direct material
44100
22500
21600
Direct labor
150000
135000
15000
Process activity
143000
114400
28600
77000
19250
57750
Production-support activity
414100
302220
111880
Cost of goods sold
65900
57780
8120
Gross profit (deficit)
75000
Corporate expenses (unallocated)
9100
Operating loss
Gross profit margin
13.73 %
16.05%
6.77 %
What would be the most likely level of support for the controller's idea by the product managers of the pen casing product line and the cell phone casing product line? (Use a minus sign or parentheses for deficits. Round the increase am
ABC
Increase/Decrease in GP%
Support of Product Manager
Cell-Phone
Casing
Pen
Casing
%
Strong
6.58
None
%
What would be the level of support by the president? (Leave unused cells blank.)
The president's support will most likely be strong
The president will gain confidence in the accuracy of th most data because they agree with her analysis
The president will gain confidence in the accuracy of the cost data because they agree with her analysis.
There is not strong evidence of improvement in profitability.
liable
provide relevant information for operational control. Does the new ABC system satis
and thus probably represents a sound cause-effect model of operations. T
There is strong evidence of improvement in profitability.
There will not be unanimous support among product managers.
There will be better support among product managers.
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