Check my work Required information Follow the instructions to create your own worksheet version of the Review Problem in the text on pages 312-314. 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 19. (Prior to completing this requirement, change all worksheet figures back to their original amounts.) B D E A 1 Chapter 7: Applying Excel 2 Data Manufacturing overhead Selling and administrative overhead $ 3 4 5 6 500,000 $ 300,000 7 Other Assembling Units 50% 10% 1,000 Processing Orders 35% 10% 45% Supporting Customers 5% 25% 100 customers 20% 250 units orders 8 Manufacturing overhead 9 9 Selling and administrative overhead 10 Total activity 11 12 13 Office Mart orders: 14 Customers 17 15 Orden 10 M 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 1 customer 19 orders BD units 595 180 $ $ $ 50 (a) What is the customer margin under activity based costing when the number of orders increases to 19? (Enter a loss as a negative amount.) Customer margin under activity-based costing orders increases to 197 (Enter a loss as a (b) What is the product margin under the traditional costing system when the number negative amount.) Product margin under the traditional cosling system (c) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under 8 traditional costing system will decrease. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under ? If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected. 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%. B D E A 1 Chapter 7: Applying Excel 2 3 Data 4 Manufacturing overhead 5 Selling and administrative overtread 6 7 $ 500,000 300.000 Processing Other Supporting Customers 5% Orders 35% 10% Assembling Units 50% 10% 1.000 8 Manufacturing overhead 9 Selling and administrative overhead 10 Total activity 20% 35% 250 3596 100 11 units orders customers 12 13 OriceMart orders: 14 Customers 15 Orders 16 Number of filing cabinets ordered in total 17 Selling price 18 Direct materials 19 Direct labor 1 customer 19 orders 80 units 595 180 50 $ $ $