1 Chapter 7: Applying Excel 3 4 5 Data Manufacturing overhead Selling and administrative overhead 500,000 300,000 Other Processing Orders 35% 8 10% Supporting Customers 5% 25% 100 Manufacturing overhead Selling and administrative overhead Total activity Assembling Units 50% 10% 1,000 9 10 45% 250 orders units customers 12 1 customer 20 orders 13 14 15 16 17 18 19 OfficeMart orders: Customers Orders Number of filing cabinets ordered in total Selling price Direct materials Direct labor 80 lunits (a) What is the customer margin under activity-based costing when the number of orders increases to 20? (Enter a loss as a negative amount.) Customer margin under activity-based costing sed conting (b) What is the product margin under the traditional costing system when the number of orders increases to 20? (Enters 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.) 2 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. 2 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. 2 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