4. explain in THREE OR FEWER SENTENCES, how your answers to questions #6 and #7 colately above would change if the company combined Quality Control and Shipping into one cost pool and allocated this cost pool to customers based on the number of cartons shipped to that customer.5. In 3 sentences or further, what is the principal feature or advantage that distinguishes activity-based costing from traditional allocation using unit-based drivers? (In other words, what is the major thing that ABC tries to accomplish?1. What is The activity allocation rates for each of the overhead cost pools?2. What is The total amount of distribution center costs allocated to Men's Small & Shrimpy Stores?3. What's The amount of gross profit the company shows for Men's Small & Shrimpy Stores?

Purple Company, in order to better assess the profitability of customers, has decided to allocate the cost of its warehouse and distribution center to its customers using activity-based costing. The warehouse manager has determined that the only costs that are economically feasible to trace directly to the customer are outbound freight costs. They have decided that the following overhead activity pools should be allocated using the following cost drivers: Overhead Cost Pool Order processing Order filling Quality control Shipping Cost Driver (allocation base) Number of individual orders processed Number of line items on all pull-tickets Number of cartons shipped Number of cartons shipped xs! The following are the relevant data for each overhead activity pool: Order processing department Order filling department Quality control department Shipping department Dept. Costs Driver Amt. $3,000,000 200,000 total orders processed $4,000,000 4,000,000 total number of line-items on pull tickets $500,000 $7,500,000 2,000,000 total number of cartons shipped 2,000,000 total number of cartons shipped The following information is available for two customers: Men's Big & Tall Stores and Men's Small & Shrimpy Stores: Mens Big & Tall Stores Sales revenue $2,400,000 Cost of merchandise $1,000,000 Number of orders 500 Mens Small & Shrimpy Stores $1,500,000 $650,000 250 15 3750 Number of pull ticket line-items 100,000 20,000 1 1 10,000 Number of cartons 50,000 40,000 252 10,000 Outbound freight costs $75,000 $56,000 3.75 210,000