3. OfficeMart 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) 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.) (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.) (c) Which of the following statements are true about what happens when the percentage of selling and Iffministrative 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 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.) ? When the percentage of selling and administrative overheod attributable to processing orders decines and the percentage of salurig and bdiministrative overnead attributabile to supporting customers increases by the same amount, costs are shifted from the processing orders cost poot to the supporting customers cost pool. (c) Which of the following statements are true about what happens when the percentage 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 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.) 2. When the percentoge of selling and administrative ovemeod attributable to processing orders declines and the percentage of selling and odministrative overheod attributable to supporting customers increases by the same amount, costs are shifed from the processing orders cost pool to the supporting customers cost pool. 1. When the percentage of selling and administrative ovethend attributable to processing orders declines and the percentage of selling ond administrative overhead attributable to supporting customers increases by the same amount, costs will be shifted from customers who order more frequently to those who order less frequently. 2 When the percentage of selling and administrative overhead attributabie to processing orders declines and the percentage of seding ond administrotive ovemed attributabie to supporting customers increases by the same amount, the customer morgins of those who order more frequently will increase relative to the customer margins of those who order less frequenty
