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%.

(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.)

(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.)

A 00 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 Supporting Customers 5% 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity Assembling Units 50% 10% 1,000 units Processing Orders 35% 35% 10% 20% 35% 250 100 11 orders customers 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 18 orders 80 units 595 180 $ $ 50