(a) What is the customer margin under activity-based costing when the number of orders increases to 18? (Enter a loss as a negative amount.)

(b) What is the product margin under the traditional costing system when the number of orders increases to 18? (Enter a loss as a negative amount.)

(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.)

Thank you!

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 18. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) TBC 1 Chapter 7: Applying Excel 2 3 Data Manufacturing overhead Selling and administrative overhead $ $ 500,000 300,000 5 Assembling Units Other 8 50% Processing Orders 35% 45% Manufacturing overhead Selling and administrative overhead Total activity Supporting Customers 5% 25% 100 10% 20% 10 10% 1,000 units 250 11 orders customers 13 OfficeMart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 1 customer 18 orders 80 units 595 180 50 $ $ 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 25% from 45% and the percentage attributable to supporting customers should be changed to 45% from 25%. B 1 Chapter 7: Applying Excel | N | | | 3 4 5 Data Manufacturing overhead Selling and administrative overhead $ $ 500,000 300,000 | Other Processing Orders 35% Supporting Customers 5% Assembling Units 50% 10% 8 9 10 10% Manufacturing overhead Selling and administrative overhead Total activity 25% 45% 20% 1,000 250 100 11 units orders customers 12 1 customer 13 OfficeMart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 18 orders 80 units 595 180 50 19 Direct labor 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 18. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) TBC 1 Chapter 7: Applying Excel 2 3 Data Manufacturing overhead Selling and administrative overhead $ $ 500,000 300,000 5 Assembling Units Other 8 50% Processing Orders 35% 45% Manufacturing overhead Selling and administrative overhead Total activity Supporting Customers 5% 25% 100 10% 20% 10 10% 1,000 units 250 11 orders customers 13 OfficeMart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 1 customer 18 orders 80 units 595 180 50 $ $ 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 25% from 45% and the percentage attributable to supporting customers should be changed to 45% from 25%. B 1 Chapter 7: Applying Excel | N | | | 3 4 5 Data Manufacturing overhead Selling and administrative overhead $ $ 500,000 300,000 | Other Processing Orders 35% Supporting Customers 5% Assembling Units 50% 10% 8 9 10 10% Manufacturing overhead Selling and administrative overhead Total activity 25% 45% 20% 1,000 250 100 11 units orders customers 12 1 customer 13 OfficeMart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 18 orders 80 units 595 180 50 19 Direct labor