Alocating selling and administratove expenses using activity-based costing Stirute inic. manufoctures office copiers, which are sold to retailers. The poice and cost of poods sold for each copier are as follows: In addition, the company incuis selling and administrative expenses of 5248,020, The company wishes to assign these costs to its three mogor retal customers, the Warehouse, Kosmo Co., and Supply Univers. These expenses are related to its three major nonmangfactuang activities: customer service, sales ordei processing. and advertusang support. The advertising support is in the form of advertisements that are placed by Shrute Inc; to support the retailer's sale of shrute cogieisi to censumer. The bodgeted activity costs and activty bases associated wah these activities are: Activity base usage and unit volume informabion for the three customers is av fotlons: 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). Feedhand r Check M Wor 1. Calculate for each activity: Budgeted Activity Cost Total Activity-Base Usage = Activity Rate 2. Calculate for each customer: Activity-Base Usage x Activity Rate from Req. (1) = Activity Cost; Sum all activity costs per customer to determine total nonmanuf 3. Construct customer prolitablity reperts for the three. customens, dated for the year ended December 31 , using the activit costs in (2). The reports should drsclose the oross prolit and operating income associated with each customer. 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: In addition, the company incurs selling and administrative expenses of $248,020. The company wishes to assign these costs to its three ma Warehouse, Kosmo Co., and Supply Universe. These expenses are related to its three major nonmanufacturing activities: customer service, advertising support. The advertising support is in the form of advertisements that are placed by shrute inc, to suipport the retaler's salc of 8 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 followsi Alocating selling and administratove expenses using activity-based costing Stirute inic. manufoctures office copiers, which are sold to retailers. The poice and cost of poods sold for each copier are as follows: In addition, the company incuis selling and administrative expenses of 5248,020, The company wishes to assign these costs to its three mogor retal customers, the Warehouse, Kosmo Co., and Supply Univers. These expenses are related to its three major nonmangfactuang activities: customer service, sales ordei processing. and advertusang support. The advertising support is in the form of advertisements that are placed by Shrute Inc; to support the retailer's sale of shrute cogieisi to censumer. The bodgeted activity costs and activty bases associated wah these activities are: Activity base usage and unit volume informabion for the three customers is av fotlons: 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). Feedhand r Check M Wor 1. Calculate for each activity: Budgeted Activity Cost Total Activity-Base Usage = Activity Rate 2. Calculate for each customer: Activity-Base Usage x Activity Rate from Req. (1) = Activity Cost; Sum all activity costs per customer to determine total nonmanuf 3. Construct customer prolitablity reperts for the three. customens, dated for the year ended December 31 , using the activit costs in (2). The reports should drsclose the oross prolit and operating income associated with each customer. 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: In addition, the company incurs selling and administrative expenses of $248,020. The company wishes to assign these costs to its three ma Warehouse, Kosmo Co., and Supply Universe. These expenses are related to its three major nonmanufacturing activities: customer service, advertising support. The advertising support is in the form of advertisements that are placed by shrute inc, to suipport the retaler's salc of 8 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 followsi
