Question: 3. Office Mart has found an error in its data. The percentage of selling and administrative overhead attributable to processing orders should be changed to
3. Office Mart 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) 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.) (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.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
