Allocating Selling and Administrative Expenses wing Activity-Based Costing Shrute Inc. monutactures office copiers, which are sold to retailers. The price and cost of goods sold for each copies are as follows: Price 5740 per unit Cost of goods sold (440) Grous profit $300 per unit In addition, the company incurs selling and administrative expenses of 5201,520. The company wishes to sign these costs tree major retall customers, The Warehouse, Kosmo Co, and Supply Universe. These expenses are related to its three major romanutacturing activities sustomer service sales order processing, and advertising support. The advertising support is in the form of advertisements that are placed by Steine to support the retoller's sale of Shrute copiers to consumers. The budgeted activity costs and activity boses owociated with these activities are Activity Budgeted Activity Cost Activity Base Customer service 534,100 Number of service requests Sales order processing 21,120 Number of sales orders Advertising support 146,300 Number of ads placed Total activity cost $205,520 Activity-base usage and unit volume information for the three customers is as follows: The Warehouse Kosmo Co. Total Supply Universe 50 10 160 220 Number of service requests 250 110 850 Number of sales orders 30 10 20 110 Number of ads placed 520