3. OfficeMart has found an error in its data. The percentage of selling and administrative overhead attributable to processing orders should be changed to 25% from 45% and the percentage attributable to supporting customers should be changed to 45% from 25%.

3(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?

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