Below is the chart for information only. before I had a chart that had the activity based costing t 7640 and the costing prouct margin at 21600. explain why the profitability pictures looks much different now than it did when OfficeMar was ordering less expensive filing cabinets less requently, but in larger quanities per order??

Chapter 6: Applying Excel
Data
Manufacturing overhead	$500,000
Selling and administrative overhead	$300,000
	Assembling Units	Processing Orders	Supporting Customers	Other
Manufacturing overhead	50%	35%	5%	10%
Selling and administrative overhead	10%	45%	25%	20%
Total activity	1,000	250	100
	units	orders	customers
OfficeMart orders:
Customers	1	customer
Orders	20	orders
Number of filing cabinets ordered in total	80	units
Selling price	$795
Direct materials	$185
Direct labor	$80
Enter a formula into each of the cells marked with a ? below
Review Problem: Activity-Based Costing
Perform the first stage allocations
	Assembling Units	Processing Orders	Supporting Customers	Other	Total
Manufacturing overhead	$ 250,000	$ 175,000	$ 25,000	$ 50,000	$ 500,000
Selling and administrative overhead	30,000	135,000	75,000	60,000	300,000
Total cost	$ 280,000	$ 310,000	$ 100,000	$ 110,000	$ 800,000
Compute the activity rates
Activity Cost Pools	Total Cost	Total Activity		Activity Rate
Assembling units	$ 280,000	1,000	units	$280	per unit
Processing orders	$ 310,000	250	orders	$1,240	per order
Supporting customers	$ 100,000	100	customers	$1,000	per customer
Compute the overhead cost attributable to the OfficeMart orders
Activity Cost Pools	Activity Rate		Activity		ABC Cost
Assembling units	$280	per unit	80	units	$22,400
Processing orders	$1,240	per order	20	orders	$24,800
Supporting customers	$1,000	per customer	1	customer	$1,000
Determine the customer margin for the OfficeMart orders under Activity-Based Costing
Sales		$ 63,600
Costs:
Direct materials	$ 14,800
Direct labor	6,400
Unit-related overhead	$22,400
Order-related overhead	$24,800
Customer-related overhead	$1,000	69,400
Customer margin		$ (5,800)
Determine the product margin for the OfficeMart orders under a traditional cost system
Manufacturing overhead	$500,000
Total activity	1,000	units
Manufacturing overhead per unit	$500	per unit
Sales		$ 63,600
Costs:
Direct materials	$ 14,800
Direct labor	6,400
Manufacturing overhead	40,000	61,200
Traditional costing product margin		$ 2,400