Allocating Selling and Administrative Expenses using Activity-Based Costing Sbout Inc. manufactures office copiers, which are sold to retailers. The price and cost of goods sold for each copier are as follows: Price $1,110 per unit Cast of goods sold 682 Gross profit $428 per unit In addition, the company incurs selling and administrative expenses of $414,030. The company wishes to assign these costs to its three major retail customers, The Warehouse, Co., and Supply Universe. These expenses are related to its three major nonmanufacturing activities: customer service, sales order processing, and advertising support. The advertising support is in the form of advertisements that are placed by Inc. to support the retailer's sale of copiers to consumers. The budgeted activity costs and activity bases associated with these activities are: Activity Budgeted Activity Cost Activity Base Customer service $76,860 Number of service requests Sales order processing 25,920 Number of sales orders Advertising support 311,250 Number of ads placed $414,030 Total activity cost Activity-base usage and unit volume information for the three customers is as follows: The Warehouse SOSMA Co. Supply Universe Total Number of service requests 62 340 25 427 Number of sales orders 300 640 140 1,080 Number of ads placed 25 180 44 249 Unit volume 810 810 810 2,430 Required: