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OfficeMart has found an error in its data. The percentage of selling and administrative overhead attributable to processing orders should be changed to 2 5

OfficeMart has found an error in its data. The percentage of selling and administrative overhead attributable to processing orders should be changed to 25% from 45% and the percentage attributable to supporting customers should be changed to 45% from 25%.Chapter 7:Applying Excel DataManufacturing 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%25%45%20% Total activity 1,000250100 units orders customers OfficeMart orders: Customers 1 customer Orders 14 orders Number of filing cabinets ordered in total 80 units Selling price 595 Direct materials 180 Direct labor 50(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.)(c) Which of the following statements are true about what happens when the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of selling and administrative overhead attributable to supporting customers increases by the same amount? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

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