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: Price $730 per unit Cost of goods sold (440) Gross profit $290 per unit In addition, the company incurs selling and administrative expenses of $251,640. 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: Budgeted Activity Activity Cost Activity Base Customer service $39,520 Number of service requests Sales order processing 22,320 Number of sales orders Advertising support 189,800 Number of ads placed Total activity cost $251,640 Activity-base usage and unit volume information for the three customers is as follows: The Supply Warehouse Kosmo Co. Universe Total Number of service requests 50 10 200 260 Number of sales orders 260 110 560 930 Number of ads placed 20 10 100 130 Unit volume 710 710 710 2,130 Required: 1. Determine the activity rates for each of the three nonmanufacturing activities. Round to the nearest whole dollar. Activity Rate Customer Service $ per serv. req. Next