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Required information 3 4 Data Manufacturing overhead Selling and administrative overhead $ 500,000 300,000 5 $ 6 Other Assembling Units 50% Processing Orders 35% Supporting

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Required information 3 4 Data Manufacturing overhead Selling and administrative overhead $ 500,000 300,000 5 $ 6 Other Assembling Units 50% Processing Orders 35% Supporting Customers 5% 45% 18 10% Manufacturing overhead Selling and administrative overhead Total activity 9 25% 20% 10% 1,000 10 250 100 units orders customers 12 13 OfficeMart orders 1 customer 10 orders 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 80 units 595 AGA 180 S 50 Prey 1 of 1 Next (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 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 os incorrect.) ? 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 , costs are shifted from the processing orders cost pool to the supporting customers cost pool. 2 When the percentage of selling and administrative overhead attributable to processing orders declinet and the percentage of seling and administrative overhead attributable to supporting customers increases by the same amount costs will be shifted from customers who order more frequently to those who order less frequently 2 When the percentage of selling and administrative overhead attributable to processing orders declines and the percentage of seling and administrative overhead attributable to supporting customers increases by the same amount the customer margins of those who order more frequently will increase relative to the customer margins of those who order less frequently

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