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 25. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) A B D E 1 Chapter 7: Applying Excel 2 3 Data 4 $ Manufacturing overhead Selling and administrative overhead 500,000 300,000 5 $ 6 7 Other Assembling Units 50% Processing Orders 35% Supporting Customers 5% 8 10% 9 Manufacturing overhead Selling and administrative overhead Total activity 10% 45% 25% 20% 10 1,000 250 100 11 units orders customers 12 13 OfficeMart orders: 14 Customers 1 customer 25 orders 80 units 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor $ 595 $ 180 $ 50 (a) What is the customer margin under activity-based costing when the number of orders increases to 25? (Enter a loss as a negative amount.) Customer margin under activity-based costing (b) What is the product margin under the traditional costing system when the number of orders increases to 25? (Enter a loss as a negative amount.) Product margin under the traditional costing system 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%. A B D E 1 Chapter 7: Applying Excel 2 3 Data 4 $ 500,000 Manufacturing overhead Selling and administrative overhead 5 $ 300,000 6 7 Processing Orders Other Assembling Units 50% 10% 1,000 Supporting Customers 5% 35% 10% 30% 40% 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 12 20% 250 100 units orders customers 1 customer 25 orders 13 OfficeMart 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 $ $ 180 $ 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.) 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