Question: 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%


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%. A B C D E 1 Chapter 7: Applying Excel 2 3 Data 4 $ 500,000 Manufacturing overhead Selling and administrative overhead 300,000 6 7 Assembling Units Processing Orders Supporting Customers Other 50% 35% 5% 10% 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 10% 35% 35% 20% 1,000 250 100 11 units orders customers 12 13 OfficeMart orders: 14 Customers 1 customer 15 Orders 22 orders 16 Number of filing cabinets ordered in total 80 units 22 orders 80 units 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials $ 595 $ 180 19 Direct labor $ 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
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