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 13. (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 13? (Enter a loss as a negative amount.) (b) What is the product margin under the traditional costing system when the number of orders increases to 13? (Enter a loss as a negative amount.) (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 arders the same total number of units over the course of a year, the customer margin under activity bas od costing will decresse. ? If a customer orders more frequently, but orders the same total number of units ower 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. OfficeMart has found an emor 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%. 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 s. and the percentage attributable to supporting customers should be changed to 35% from 25%. (a) Based on new number of orders in Requirement Z what is the customer margin under activity-based costing when the data are correctod? (Enter a loss as a negative amount.) (b) Based on new aumber af 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.) (c) Which of the following statements are true about what happens when the peroentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount? (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 bax 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.] ? When the percentage of seling and adminietralive overhead attributeble to proces sing orders declines and the percentage of selling and administratve overhead attributzale to supporting cuslomers increases by the same amount, cosis are shifted from the processing orders cost pool to the supporting customers cost pool. ? When the percentege of seling and administretive overheed ettibuteble to proces sing orders declines end the petcentage of selling and administratwe averhend attributahle ta supporting customers increases by the same ambure, costs will be shifted from customers who order mere frequently to those who order iess frequently. ? When the percentegen of seling and administrative ovorhead atributabie to processing orders declines and the percentege of selling and administrefve over head etributeble to supporting customers increases by the same amount, the castomer mergins of those who order more frecuently will increase relative to the customer margins of those who order less frequently. 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 13. (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 13? (Enter a loss as a negative amount.) (b) What is the product margin under the traditional costing system when the number of orders increases to 13? (Enter a loss as a negative amount.) (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 arders the same total number of units over the course of a year, the customer margin under activity bas od costing will decresse. ? If a customer orders more frequently, but orders the same total number of units ower 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. OfficeMart has found an emor 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%. 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 s. and the percentage attributable to supporting customers should be changed to 35% from 25%. (a) Based on new number of orders in Requirement Z what is the customer margin under activity-based costing when the data are correctod? (Enter a loss as a negative amount.) (b) Based on new aumber af 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.) (c) Which of the following statements are true about what happens when the peroentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount? (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 bax 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.] ? When the percentage of seling and adminietralive overhead attributeble to proces sing orders declines and the percentage of selling and administratve overhead attributzale to supporting cuslomers increases by the same amount, cosis are shifted from the processing orders cost pool to the supporting customers cost pool. ? When the percentege of seling and administretive overheed ettibuteble to proces sing orders declines end the petcentage of selling and administratwe averhend attributahle ta supporting customers increases by the same ambure, costs will be shifted from customers who order mere frequently to those who order iess frequently. ? When the percentegen of seling and administrative ovorhead atributabie to processing orders declines and the percentege of selling and administrefve over head etributeble to supporting customers increases by the same amount, the castomer mergins of those who order more frecuently will increase relative to the customer margins of those who order less frequently