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% B D E A 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 $ $ 500,000 300,000 7 Other Assembling Units 50% 10% 1.000 units 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 Processing Orders 35% 35% 250 orders Supporting Customers 5% 35% 100 10% 20% customers 12 13 OfficeMart 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 1 customer 13 orders 80 units 595 $ 5 $ 180 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.) Custommaginum decco (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.) Product moto understad al costing system (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 seling 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 outomatically graded as incorrect) When the percentage of selling and administrative overhead tu butable to processing orders declines and the percentage of colling and administrative overhead ottbutoble to supporting customers increases by the same amount, costs are shifted from the processing orders cost pool to the supporting customers cost pool DA R. Alave (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 os incorrect) When the percentage of celling and administrative overhead attributable to processing orders declines and the percentage of seling and administrative overhead tributable to supporting customers increases by the same amount contare shifted from the processing orders.com pool to the supporting customers contpool When the percentage of telling and administrative overhead attributable to processing orders declines and the percentage of selling and odministrative 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 ? 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 the customer margins of those who order more frequently will increase relative to the customer margins of those who order less frequently