B Chapter 7: Applying Excel D E 1 2 3 4 Data Manufacturing overhead Selling and administrative overhead 5 $ $ 500,000 300,000 6 7 Processing Orders Other 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 12 Assembling Units 50% 10% 1,000 units Supporting Customers 5% 25% 100 10% 20% 45% 250 orders customers 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 7 orders 80 units 595 180 50 $ $ $ (a) What is the customer margin under activity-based costing when the number of orders increases to 7? (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 72 (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.) it 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. 2 B Chapter 7: Applying Excel D E 1 2 3 4 Data Manufacturing overhead Selling and administrative overhead 5 $ $ 500,000 300,000 6 7 Processing Orders Other 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 12 Assembling Units 50% 10% 1,000 units Supporting Customers 5% 25% 100 10% 20% 45% 250 orders customers 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 7 orders 80 units 595 180 50 $ $ $ (a) What is the customer margin under activity-based costing when the number of orders increases to 7? (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 72 (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.) it 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. 2
