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 C D E F 1 Chapter 7: Applying Excel 3 Data 4 Manufacturing overhead Selling and administrative overhead $500,000 $300,000 Assembling Processing Units Orders 50% 35% 10% 35% Supporting Customers 5% Other 10% 8 Manufacturing overhead Selling and administrative overhead 10 Total activity 35% 20% 1,000 units 250 orders 100 customers 12 13 OfficeMart orders: 14 Customers 15 Orders 1 customer 10 orders MI.. L. Linat (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 (c) Which of the following statements are true about what hannens when the nercentage of selling and administrative overhead attributable to processing orders declines and the 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 C D E F 1 Chapter 7: Applying Excel 3 Data 4 Manufacturing overhead Selling and administrative overhead $500,000 $300,000 Assembling Processing Units Orders 50% 35% 10% 35% Supporting Customers 5% Other 10% 8 Manufacturing overhead Selling and administrative overhead 10 Total activity 35% 20% 1,000 units 250 orders 100 customers 12 13 OfficeMart orders: 14 Customers 15 Orders 1 customer 10 orders MI.. L. Linat (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 (c) Which of the following statements are true about what hannens when the nercentage of selling and administrative overhead attributable to processing orders declines and the
