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 19. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) 123456 A 1 Chapter 7: Applying Excel B D E Data Manufacturing overhead $ 500,000 Selling and administrative overhead $ 300,000 7 Assembling Processing Supporting Other Units Orders Customers 8 Manufacturing overhead 9 Selling and administrative overhead 50% 35% 5% 10% 10% 45% 25% 20% 10 Total activity 11 1,000 250 100 units orders customers 12 13 OfficeMart orders: 14 Customers 1 customer 15 Orders 19 orders 16 Number of filing cabinets ordered in total 80 units 17 Selling price $ 595 18 Direct materials $ 180 19 Direct labor $ 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.) Customer margin under activity-based 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.) 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.) 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. 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. 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.