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Alocating selling and administrative expenses using activity-based costing Shrute Inc, manufactures office copiers, which are sold to retallers. The price and cost of goods sold

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Alocating selling and administrative expenses using activity-based costing Shrute Inc, manufactures office copiers, which are sold to retallers. The price and cost of goods sold for each copler are as follows: In addition, the company incurs seiling and administrative expenses of $268,900. 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-base usage and unit volume information for the three customers is as 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. 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

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