2. Assume that Office Mart places orders more frequently, but everything else remains the same. On your worksheet increase the number of orders from 4 to 19. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) Chapter 5: Applying Excel B D E 1 2 3 4 Data Manufacturing overhead Seling and administrative overhead 5 6 $ $ 500,000 300,000 7 Other 8 Manufacturing overhead Selling and administrative overhead Total activity 10% Assembling Units 50% 10% 1.000 units Supporting Customers 5% 25% 100 Processing Orders 35% 45% 250 orders 9 10 11 12 20% customers 13 14 15 16 17 18 19 OfficeMart orders: Customers Orders Number of filing cabinets ordered in total Selling price Direct materials Direct lobor 1 customer 19 orders B0 units 595 180 50 $ $ $ (a) What is the customer margin under activity-based costing when the number of orders increases to 19? (Enter a loss as a negative amount.) Answer is complete but not entirely correct. Customer margin under activity-based $ 11,300 costing (b) What is the product margin under the traditional costing system when the number of orders increases to 19? (Enter a loss as a negative amount.) Answer is complete and correct. Product margin under the traditional costing system (10,800) 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.) ? s 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. Y 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. 3. Office Mart has found an error in its data. The percentage of selling and administrative overhead attributable to processing orders should be changed to 30% from 45% and the percentage attributable to supporting customers should be changed to 40% from 25%. B D E Chapter 5: Applying Excel 1 Data 2 3 4 5 $ Manufacturing overhead Selling and administrative overhead 500,000 300,000 $ 6 7 Other Assembling Units 50% Processing Orders 35% Supporting Customers 5% Manufacturing overhead 10% a....docx A w Required information B D 2 E $ $ 500,000 300,000 3:56 Other A 1 Chapter 5: Applying Excel 2 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 7 8 Manufacturing overhoad 9 Selling and administrative overhead Total activity 10 11 12 OfficeMart orders: 13 Customers Orders 15 Number of filing cabinets ordered in total 16 Selling price 17 Direct materials 18 Direct labor 19 Assembling Units 50% 10% 1.000 Processing Orders 35% 30% 250 Supporting Customer 5% 40% 100 10% 20% units orders customers 1 customer 19 orders units 80 595 $ $ $ 180 50 Required Information (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.) Answer is complete but not entirely correct. Customer margin under activity-based $ 11,300 coating (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.) Answer is complete but not entirely correct. Product margin under the traditional conting $ 10.800 bystom