Allocating selling and administrative expenses using activity-based costing Shrute Inc. manufactures office copiers, which are sold to retailers. The price and cost of goods sold for each copier are as follows: Line Item Description Amount Price $700 per unit Cost of goods sold (420) Gross profit $280 per unit In addition, the company incurs selling and administrative expenses of $222,490. The company wishes to assign these costs to its three major retail customers, The Warehouse, Kosmo 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 Shrute Inc. to support the retailer's sale of Shrute copiers to consumers. The budgeted activity costs and activity bases associated with these activities are: Activity Budgeted Activity Cost Activity Base Customer service $44,950 Number of service requests Sales order processing 25,740 Number of sales orders Advertising support 151,800 Number of ads placed Total activity cost $222,490 Activity-base usage and unit volume information for the three customers is as follows: Line Item Description The Warehouse Kosmo Co. Supply Universe Total Number of service requests 70 10 230 310 Number of sales orders 220 90 470 780 Number of ads placed 20 10 80 110 Unit volume 660 660 660 1,980 Required: Question Content Area 1. Determine the activity rates for each of the three nonmanufacturing activities. Round to the nearest whole dollar. Activity Activity Rate Customer Service fill in the blank 1 of 3$ per serv. req. Sales Order Processing fill in the blank 2 of 3$ per sls. order Advertising Support fill in the blank 3 of 3$ per ad 2. Determine the activity costs allocated to the three customers, using the activity rates in (1). Activity Activity Costs The Warehouse fill in the blank 1 of 3$