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 22. (Prior to completing this requirement, change all worksheet figures back to their original amounts.)

(a) What is the customer margin under activity-based costing when the number of orders increases to 22? (Enter a loss as a negative amount.)

3. OfficeMart has found an error in its data. The percentage of selling and administrative overhead attributable to processing orders should be changed to 25% from 45% and the percentage attributable to supporting customers should be changed to 45% from 25%.

(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.)

c TD . Chapter 7: Applying Excel | 1 | 2 3 Data 4 5 Manufacturing overhead Selling and administrative overhead $ $ 500,000 300,000 | 6 Assembling Units 50% Other Processing Orders 35% Supporting Customers 8 Manufacturing overhead 5% 10% 9 Selling and administrative overhead 10% 45% 25% 20% Total activity 1,000 250 100 11 units orders customers 12 13 OfficeMart orders: 14 Customers 1 customer orders units | 15 Orders | 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor $ $ $ 15 80 595 180 50 c TD . Chapter 7: Applying Excel | 1 | 2 3 Data 4 5 Manufacturing overhead Selling and administrative overhead $ $ 500,000 300,000 | 6 Assembling Units 50% Other Processing Orders 35% Supporting Customers 8 Manufacturing overhead 5% 10% 9 Selling and administrative overhead 10% 45% 25% 20% Total activity 1,000 250 100 11 units orders customers 12 13 OfficeMart orders: 14 Customers 1 customer orders units | 15 Orders | 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor $ $ $ 15 80 595 180 50