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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
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 9. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) A B D E 1 Chapter 7: Applying Excel 2 3 3 4 5 4 Data Manufacturing overhead Selling and administrative overhead S 500,000 300,000 5 S 6 7 Other Processing Orders 35% Assembling Units 50% 10% 1,000 units Supporting Customers 5% 25% 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 10% 20% 45% 250 100 orders customers 1 customer 9 orders 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 80 units S 595 1999 S 180 50 (a) What is the customer margin under activity-based costing when the number of orders increases to 9? (Enter a loss as a negative amount.) Customer margin under activity-based costing $ (10,320) 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 35% from 45% and the percentage attributable to supporting customers should be changed to 35% from 25%. A B D E 1 Chapter 7: Applying Excel 2 S 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 500,000 300,000 S 6 7 Other Assembling Units 50% Processing Orders 35% 35% Supporting Customers 5% 35% 10% 20% 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 10% 1,000 units 250 100 orders customers HRE 1 customer 9 orders 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 80 units S S 595 180 S 50 (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 $ 10,320
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