2. Assume that OfficeMart places orders more frequently, but everything else remains the same. On your...

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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.) A 1 Chapter 7: Applying Excel 2 3 4 Manufacturing overhead 5 Selling and administrative overhead 6 7 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 12 13 OfficeMart orders: 14 Customers Data Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 20 B $500,000 $300,000 Assembling Units 50% 10% 1,000 units с Processing Orders 23 rders 80 units $595 $180 $50 1 customer 35% 45% 250 orders D Supporting Customers 5% 25% 100 customers E Other 10% 20% F (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 (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 system $ 10,800 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 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 7 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 12 13 OfficeMart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 20 B $500,000 $300,000 Assembling Units 50% 10% 1,000 units C Processing Orders 23 orders 80 units $595 $180 $50 1 customer 35% 30% 250 orders D Supporting Customers 5% 40% 100 customers E Other 10% 20% F (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 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.) A 1 Chapter 7: Applying Excel 2 3 4 Manufacturing overhead 5 Selling and administrative overhead 6 7 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 12 13 OfficeMart orders: 14 Customers Data Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 20 B $500,000 $300,000 Assembling Units 50% 10% 1,000 units с Processing Orders 23 rders 80 units $595 $180 $50 1 customer 35% 45% 250 orders D Supporting Customers 5% 25% 100 customers E Other 10% 20% F (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 (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 system $ 10,800 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 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead 5 Selling and administrative overhead 6 7 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 11 12 13 OfficeMart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 20 B $500,000 $300,000 Assembling Units 50% 10% 1,000 units C Processing Orders 23 orders 80 units $595 $180 $50 1 customer 35% 30% 250 orders D Supporting Customers 5% 40% 100 customers E Other 10% 20% F (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

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