Alocating selling and administrative expenses using activity-based costing Shrute Inc. manufactures office copieis, which are sold to retaliers. The price and cost of goods sold for eoch copier are as follows: In add tion, the company incurs seliing and administrative expenses of $226,760. The company wishes to assign these conts to its three major retal customers, The Warehbuse, Kosmo Co, and Supply Universe. These expenses are related to its three major nonmanufacturing activites; custemer service, sales order processing, and advertsing support. The advertising support is in the form of advertisements that are placed by shrute the. to support the retailer's sale of shrute coplers to consumers. The budgeted activity costs and activity bares associated with these activites are: Activity-base usage and ung volume information for the three customers is os follows: 1. Determine the activity rates for each of the three nonmanufacturing activities. Round to the nearest whole dollar. 2. Determine the activity costs allocated to the three customers, using the activity rates in (1). 3. Construct customer profitability reports for the three customers, dated for the year ended December 31, using the activity costs in (2). The reports should disclose the gross profit and operating income associated with each customer