(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)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1MC: The amount of a units sales price that helps to cover fixed expenses is its ____________________. A....
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(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)
Transcribed Image Text:(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%
Transcribed Image Text: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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