Required information Follow the instructions to create your own worksheet version of the Review Problem in the text on pages 312-314 2. Assume that OfficeMart places orders more frequently, but everything else remains the same. On your worksheet increase the number of orders from 4 to 23. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) 1 Chapter 7: Applying Excel Data Manufacturing overhead Selling and administrative overhead 500,000 $300,000 4 6 Assembling Processing SupportingOther Other Units 50% 10% 1,000 units Orders Customers 5% 25% 100 orderscustomers 35% 45% 250 10% 20% Manufacturing overhead 8Selling and administrative overhead 9 Total activity 10 OfficeMart orders Customers 12 13 orders 14 Number of filing cabinets ordered in 1 customer 23 orders 80 units 15 total $ 595 $ 180 50 16 Selling price Direct materials 17 Direct labor 18 19 (a) What is the customer margin under activity-based costing when the number of orders increases to 23? (Enter a loss as a negative amount.) ustomer margin under activity- based costin (b) What is the product margin under the traditional costing system when the number of orders increases to 23? (Enter a loss as a negative amount.) Product margin under the traditional costing systemm (c) Which of the following statements are true? (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.) Ifa customer orders more frequently, but orders the same total number of units over the course of a year the customer margin under activity based costing will decrease V Ifa customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will decrease If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will be unaffected If a customer orders more frequently, but orders the same total number of units over the course of a year the product margin under a traditional costing system will be unaffected 3. 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%. 1 Chapter 7: Applying Excel 2 3 4 Data Manufacturing overhead Selling and administrative overhead 500,000 S 300,000 Assembling Processing Supporting Orders Customers Other Units Manufacturing overhead 8 Selling and administrative overhead 9 Total activit 10 50% 10% 1,000 units 5% 35% 100 orders customers 35% 35% 250 10% 20% OfficeMart orders Customers 12 13 orders 14 Number of filing cabinets orderedn 1customer 23 orders 80 unit 15 total 16 Selling price $595 S 180 Direct materials 17 Direct labor 18 19 (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 costin (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.) (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 systemm (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.) V 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 V 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 will be shifted from customers who order more frequently to those who order less frequently 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, the customer margins of those who order more frequently will increase relative to the customer margins of those who order less frequently