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
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 1 Chapter 5: Applying Excel 2 3 Data B C D E 4 Manufacturing overhead $ 500,000 5 Selling and administrative overhead $ 300,000 6 7 Assembling Processing Units Orders Supporting Customers Other 8 Manufacturing overhead. 50% 35% 5% 10% 9 Selling and administrative overhead 10% 35% 35% 20% 10 Total activity 1,000 250 100 units orders customers 11 12 13 OfficeMart orders: Customers 1 customer 14 Orders 8 orders 15 16 Number of filing cabinets ordered in total 80 units Selling price $ 595 17 Direct materials S 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.) Answer is complete but not entirely correct. Customer margin under activity-based costing (162,400)
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