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Assume that OfficeMart places orders more frequently, but everything else remains the same. On your worksheet increase the number of orders from 4 to 12

Assume that OfficeMart places orders more frequently, but everything else remains the same. On your worksheet increase the number of orders from 4 to 12

DataManufacturing overhead$500,000Selling and administrative overhead$300,000Assembling UnitsProcessing OrdersSupporting CustomersOtherManufacturing overhead50%35%5%10%Selling and administrative overhead10%45%25%20%Total activity1,000250100unitsorderscustomersOfficeMart orders:Customers1customerOrders12ordersNumber of filing cabinets ordered in total80unitsSelling price$595Direct materials$180Direct labor$50

What is the customer margin under activity-based costing when the number of orders increases to 12?

What is the product margin under the traditional costing system when the number of orders increases to 12?

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