eBook Show Me How Calculator Print Item Allocating Selling and Administrative Expenses using Activity-Based Costing Shrute Inc. manufactures office copiers, which are sold to retailers. The price Price 1.110 per un Cost of goods sold Gross profit $420 per unit In addition, the company incurs selling and administrative expenses of $414,030. 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 retailers sale of Shrute coplers to consumers. The budgeted activity costs and activity bases associated with these activities are Budgeted Activity Activity Base Activity cost Number of service reque Customer service Sales order processing Number of sales anders Advertising support Number of ads placed Total activity cost Activity-base use and unit volume information Number of service requests Number of all order Number of ads placed 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. Enter all amounts as positive numbers. Shrute Inc. Customer Profitability Report For the Year Ended December 31 The Warehouse Kosmo Co. Revenues $899.100 899, 100 89 Cost of goods sold Gross profit Selling and administrative activities Customer service cost $ 11.160 Sales order processing cost Advertising support cost Total selling and administrative 19.610 $ 297.670 S45.120 Income from operations