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3. OfficeMart has found an error in its data. The percentage of selling and administrative overhead attributable to processing orders should be changed to 30%
3. OfficeMart has found an error in its data. The percentage of selling and administrative overhead attributable to processing orders should be changed to 30% from 45% and the percentage attributable to supporting customers should be changed to 40% from 25% B C D E 1 Chapter 7: Applying Excel 2 3 4 Data Manufacturing overhead Selling and administrative overhead $ 500,000 $ 300,000 5 6 7 Other Assembling Units 50% Processing Orders 35% Supporting Customers 5% 10% 00 Manufacturing overhead Selling and administrative overhead Total activity 10% 30% 40% 20% 9 1,000 250 100 10 units orders customers 11 1 customer 23 orders 12 OfficeMart orders: 13 Customers 14 Orders 15 Number of filing cabinets ordered in total 16 Selling price 17 Direct materials 18 Direct labor 80 units $ 595 $ 180 50 $ 19 (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.) Customer margin under activity-based costing (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 margin under the traditional costing system
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