Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Price per unit Cost of goods sold Gross profit per unit $74,750,00 61,15000 per unit $15,600.00 per unit In addition, the company incurs selling and administrative expenses of $241,420. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Marin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and actity bases associated with these activities are: Customer service Project bidding Engineering support Total costs Activity Budgeted Activity Cost Activity Base $82,940.00 Number of service requests 64310.00 Number of bids 94,170.00 Number of customer design changes $241,420.00 Activity-base usage and unit volume information for the three customers is as follows: The Martin Gough Industries Breen Inc. Group Total Number of service requests 59 54 206 319 Number of bids 37 17 55 109 Number of customer design changes 40 27 142 215 Unit volume 13 5 42 Required: 1. Determine the activity rates for each of the three nonmanufacturing activity pools. Plater to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries 2. Determine the activity costs alocated to the three customers, using the activity rates in (1). Refer to the late of Labels and Amount Description for the exact wording of the answer choices for text entries 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 income from operations associated with each customer. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Colons() will automatically appear if required. Enter all amounts as positive numbers, except for a negative income from operations. Activity rates 1. Determine the activity rates for each of the three nonmanufacturing activity pools. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries Activity Activity Costs Activity00 per serv reg per bid per design change 2. Determine the activity costs allocated to the three customers, using the activity rates in (1). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entr Activity Cests Customer Profitability Report 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 proft and income from operations associated with each customer Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Colons () will automatically appear if required. Enter all amounts as positive numbers, except for a negative income from operations Arctic Air Inc. Customer Profitability Report (Label) The Martin Gough Industries Breen Inc. Group