(b) What is the product margin under the traditional costing system when the number of orders increases to 14? (Enter a loss as anegative amount.)Product margin under the traditional costing system 2. Assume that OfficeMart places orders more frequently, but everything else remains the same. On your worksheet increase thenumber of orders from 4 to 14. (Prior to completing this requirement, change all worksheet figures back to their original amounts.)1 Chapter 5: Applying Excel2DataA34 Manufacturing overhead5 Selling and administrative overhead678 Manufacturing overheadSelling and administrative overhead910 Total activity111213 OfficeMart orders:14 Customers15 Orders16 Number of filing cabinets ordered in total17 Selling price18 Direct materials19 Direct laborCustomer margin under activity-based costing $69B$ 500,000$ 300,000AssemblingUnits$$$50%10%1,000unitsсProcessingOrders1 customer14 orders80 units5951805035%45%250ordersDSupportingCustomers5%25%100customersEOther(a) What is the customer margin under activity-based costing when the number of orders increases to 14? (Enter a loss as a negativeamount.)10%20%

A costing technique called activity-based costing (ABC) allocates indirect and overhead expenses to…

2. Assume that OfficeMart places orders more frequently, but everything else remains the same. On your worksheet increase the number of orders from 4 to 14. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) A 1 Chapter 5: Applying Excel 2 3 4 Manufacturing overhead 5 Selling and administrative overhead 6 7 Data 8 Manufacturing overhead 9 10 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 Selling and administrative overhead Total activity $ $ Customer margin under activity-based costing $ 69 B $ $ $ 500,000 300,000 Assembling Units 50% 10% 1,000 units C Processing Orders 1 customer 14 orders 80 units 595 180 50 35% 45% 250 orders D Supporting Customers 5% 25% 100 customers E Other 10% 20% (a) What is the customer margin under activity-based costing when the number of orders increases to 14? (Enter a loss as a negative amount.)

2. Assume that OfficeMart places orders more frequently, but everything else remains the same. On your worksheet increase the number of orders from 4 to 14. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) A 1 Chapter 5: Applying Excel 2 3 4 Manufacturing overhead 5 Selling and administrative overhead 6 7 Data 8 Manufacturing overhead 9 10 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 Selling and administrative overhead Total activity $ $ Customer margin under activity-based costing $ 69 B $ $ $ 500,000 300,000 Assembling Units 50% 10% 1,000 units C Processing Orders 1 customer 14 orders 80 units 595 180 50 35% 45% 250 orders D Supporting Customers 5% 25% 100 customers E Other 10% 20% (a) What is the customer margin under activity-based costing when the number of orders increases to 14? (Enter a loss as a negative amount.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sunland Products manufactures and sells a variety of camping products. Recently the company opened a new factory to manufacture a deluxe portable cooking unit. Cost and sales data for the first month of operation are shown below: Beginning inventory Units produced Units sold Manufacturing costs Fixed overhead Variable overhead Direct labour Direct material Selling and administrative costs Fixed Variable 0 units 11,200 10,100 $100,800 $3 $12 $28 $207,100 per unit. per unit per unit $3 per unit sold The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement.
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