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hello! I just need help on the last part as im having trouble figuring it out. thanks! Allocating selling and administrative expenses using activitybased costing

hello! I just need help on the last part as im having trouble figuring it out. thanks!

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Allocating selling and administrative expenses using activitybased costing Shrute Inc. manufactures office copiers, which are sold to retailers. The price and cost of goods sold for each copier are as follow: Price $730 per unit Cost of goods sold (440) Gross profit $290 per Uhit In addition, the company incurs selling and administrative expenses of $229,560. The company wishes to assign these costs to it. 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 retailer's sale of Shrute copiers to consumers. The budgetec activity costs and activity bases associated with these activities are: Budgeted Activity Activity Cost Activity Base Customer service $33,440 Number of service requests Sales order processing 23,220 Number of sales orders Advertising support 172,900 Number of ads placed Total activity cost $229,550 Activity-base usage and unit volume information for the three customers is as follows: The Supply Warehouse Kosrno Co. Universe Total Number of service requests 50 10 160 220 Number of sales orders 240 100 520 860 Number of ads placed , 20 10 100 130 Unit volume 720 720 720 2,160 Required: 1. Determine the activity rates for each of the three nonmanufacturing activities. Round to the nearest whole dollar. Activity Rate is J Customer Service 152 per serv. req. $ J Sales Order Processing 27 per sls. order $ J Advertising Support 1,330 per ad 2. Determine the activity costs ailocated to the three customers, using the activity rates in (1). Activity Costs $ J 40,680 The Warehouse hunt I IU hu- 4: V 17,520 $ J 171,360 Supply Universe Feedback Check My Work 1. Calculate For each activity: Budgeted Activity Cost + Total Activity-Base Usage = Activity Rate 2. Calculate for each customer: Activitvaase Usage x Activity Rate from Req. (1) = Activity Cost; Sum all activity costs per customer to determine total nonmanufacturing activity costs. 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 operating income associated with each customer. Shrute Inc. Customer Profitability Report For the Year Ended December 31 Description The Warehouse Kosmo Co. Supply Universe $ X $ $ Revenues Cost of goods sold $ $ $ Gross prot Selling and administrative activities: Customer service $ $ $ Sales order processing Advertising support Total selling and administrative activities _ $ Operating income Feedback Check My Work 3. Set up a customer profitability report for each customer as: Revenues - Cost of Goods Sold = Gross Profit; Gross Prot - Activity Expenses = Operating Income Revenues = Price per Unit x Unit Volume Cost of Goods Sold = Cost of Goods Sold oer Unit x Unit Volume

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