eBook Show Me How Calculator Allocating selling and administrative expenses using activity based costing Labels and Amount Descriptions Activity rates Activity Costs Customer Profitability Report Suced ceils have feedback 3. Construct customer profitability reports for the three customers, dated for the year ended December 31, using the activity costs in (). The reports should disclose the gross profit and income from operations associated with each customer Refer to the list of Lisbets 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. Enteral amounts as positive numbers, except for a negative income from operations Arctic Air Inc. Score: 77/137 Customer Profitability Report For the Year Ended December 31 Gough Industries Breen Inc 2 Revenues $1,503,000.00 1,181,000.00 $322,000.00 Cost of goods sold The Martin Group $375,750.00 295,250.00 $80,500.00 $976,950.00 767,650.00 $209,300.00 4 Gross profit Selling and administrative activities: Customer service Project bidding Engineering support Total selling and administrative activities 10 Income from operations Check My Work Arctic An Inc, manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows Price per unit $75,150.00 per unit Cost of goods sold 59,050.00 Gross profit per unit $16,100.00 per unit In addition, the company incurs selling and administrative expenses of $247,202. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin 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 activity bases associated with these activities are: structions Activity Activity Base 2 Customer service Activity Cost 595,708.00 57,834.00 Number of service requests Number of bids Project bidding Engineering support 93,660.00 Number of customer design changes Total costs $247,202.00 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 225 337 102 Number of bids Number of customer design changes Unit volume