Required information B C D E 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 $ $ 500,000 300,000 7 Other 899 Assembling Units 50% 10% 1,000 units Processing Orders 35% 45% Supporting Customers 5% 25% 100 customers 10% 20% 250 orders 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 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 12 orders 80 units 595 $ $ $ 180 50 N 4 - Chapter 7 Seved Help Save & E Che 12 Required information t2 of 2 (a) What is the customer margin under activity-based costing when the number of orders increases to 12? (Enter a loss as a negative amount.) Customer margin under activity-based costing 02:43:10 hock Ask (b) What is the product margin under the traditional costing system when the number of orders increases to 12? (Enter a loss as a negative amount.) ferences Product margin under + traditional costing system Saved . Required information (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.) 3 3 3 3 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. 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. 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. Required information OR D E Chapter 7: Applying Excel 1 WN $ 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 7 500,000 300,000 $ 7:29 Supporting Customers Other ak 8 5% Assembling Units 50% 10% 1.000 units Manufacturing overhead Selling and administrative overhead Total activity Processing Orders 35% 35% 250 orders 10% 20% 9 10 11 35% 100 nicos customers 1 customer 12 orders 12 13 Office Mart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 80 units $ $ $ 595 180 50 Saved Help 2 Required information of 2 (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 47:14 Dok (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.) ences Product marin under the traditional conting system Product margin under the traditional costing system 47:03 (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. 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.) ok ancor When the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative othead 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 deling 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 orderless frequently