arctic air inc. manufactures cooling units

time unit of machine th Each product requires 40 minutes per Instructions 1. Determine the activity rate for each activity. 2. Determine the total and per-unit activity cost for all three p products. Round to neares products since th a eu Why aren't the activity unit costs equal across all three the same machine time per unit? PR 18-SA Allocating selling and admin activity-based costing istrative expenses using cooling units for commercial buildings. The price and cos ufactures 3. The Martin Group Arctic Air Inc. manu loss from operations, sold for each unit are as follows: 560,000 per unit Price Cost of goods sold Gross profit $11,300) 32000 per unit In addition, the company incurs selling and administrative expenses of $226,250. The wishes to assign these costs to its three major customers, Gough Industries, Bre copa Martin Group. These expenses are related to three major nonmanufacturing service, project bidding, and engineering support. The engineering su engineering budgeted activity costs and activity bases associated with these activities are EEI Breen Inc., and The activities: customer support is in the fortiel The changes that are placed by the customer to change the design of a Activity Base Customer service Project bidding Engineering support Budgeted Activity Cost 31,500 74,000 120,750 Number of service requests Number of bids Number of customer design changes Total costs Activity-base usage and unit volume information for the three customers is as follows The Martin Group 116 95 108 Gough Industries Breen Inc Number of service requests Number of bids Number of customer design changes Unit volume 36 50 18 30 Total 180 185 161 50 35 16 1. Determine the activity rates for each of the three nonmanufacturing activity pools. 2. Determine the activity costs allocated to the three customers, using the activity rates in 3. Construct customer profitability reports for the three customers, dated for the year ende December 31, using the activity costs in (2). The reports should disclose the gross pr and income from operations associated with each customer. Provide recommendations to management, based on the profitability reports profit in 3)