Required information The Chapter 7 Form worksheet is to be used to create your own worksheet version of the Review Problem for Activity Based Costing found in the text (include a link of the problem). 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.) B D E A Chapter 7: Applying Excel 1 2 3 Data Manufacturing overhead Selling and administrative overhead $ 500.000 5 $ 300,000 6 7 Other Assembling Units 50% 10% Manufacturing overhead Selling and administrative overhead Total activity Processing Orders 35% 45% Supporting Customers 5% 25% 10% 20% 9 10 1.000 100 250 orders units customers 11 12 13 Office Mart orders: Customers 14 1 customer 23 orders 15 Orders Number of filing cabinets ordered in total Selling price 16 17 80 units 595 $ $ Direct materials 180 18 Direct labor $ 50 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.) Customer margin under activity-based costing (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.) 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 decrease. 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 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 30% from 45% and the percentage attributable to supporting customers should be changed to 40% from 25%. B D E . Chapter 7: Applying Excel 1 2 3 Data 4 $ Manufacturing overhead Selling and administrative overhead 500,000 300,000 5 $ 6 7 Other Supporting Customers 5% 10% Assembling Units 50% 10% 1.000 units Processing Orders 35% 30% 250 orders Manufacturing overhead Selling and administrative overhead Total activity a 40% 9 20% 10 100 customers 11 12 13 14 1 customer 23 orders 15 OfficeMart orders: Customers Orders Number of filing cabinets ordered in total Selling price Direct materials 16 17 80 units 595 $ $ 180 18 Direct labor $ 50 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 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 Required information The Chapter 7 Form worksheet is to be used to create your own worksheet version of the Review Problem for Activity Based Costing found in the text (include a link of the problem). 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.) B D E A Chapter 7: Applying Excel 1 2 3 Data Manufacturing overhead Selling and administrative overhead $ 500.000 5 $ 300,000 6 7 Other Assembling Units 50% 10% Manufacturing overhead Selling and administrative overhead Total activity Processing Orders 35% 45% Supporting Customers 5% 25% 10% 20% 9 10 1.000 100 250 orders units customers 11 12 13 Office Mart orders: Customers 14 1 customer 23 orders 15 Orders Number of filing cabinets ordered in total Selling price 16 17 80 units 595 $ $ Direct materials 180 18 Direct labor $ 50 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.) Customer margin under activity-based costing (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.) 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 decrease. 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 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 30% from 45% and the percentage attributable to supporting customers should be changed to 40% from 25%. B D E . Chapter 7: Applying Excel 1 2 3 Data 4 $ Manufacturing overhead Selling and administrative overhead 500,000 300,000 5 $ 6 7 Other Supporting Customers 5% 10% Assembling Units 50% 10% 1.000 units Processing Orders 35% 30% 250 orders Manufacturing overhead Selling and administrative overhead Total activity a 40% 9 20% 10 100 customers 11 12 13 14 1 customer 23 orders 15 OfficeMart orders: Customers Orders Number of filing cabinets ordered in total Selling price Direct materials 16 17 80 units 595 $ $ 180 18 Direct labor $ 50 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 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