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In addition, the company incurs selling and administrative expenses of $214,630. The company wishes to assign these costs to its three major retail customers,
In addition, the company incurs selling and administrative expenses of $214,630. 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 retailer's sale of Shrute copiers to consumers. The budgeted activity costs and activity bases associated with these activities are
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