Moscovitz Produce (MP) developed data (shown below) on indirect costs in order to improve its assessment of customer profitability. Web orders are placed by customers on the MP web site, while manual orders are phoned into the sales office. SKU's (stock keeping units) are identifiers used to reference specific inventory items. Data on two of MP's customers is also provided. Total Cost Driver Activity Customer Cost Pool Web orders Manual orders Picking orders Packaging onders Returns Annual Cost Cost Driver Activity Web orders Manual orders Picking orders Packaging orders Returns Acme Deli Boson Cafe $1,000,000 # of web orders $2,000,000 # of phone orders $3,000,000 # of SKU's ordered $1,500,000 of items ordered $3,000,000 #ofretins 250,000 400,000 100,000 50,000,000 50,000 500 0 800 1,000,000 0 1,000 1,800 1,000,000 200 Acme Deli and Boson Ca fe each generated reven ues in the prior year of $580,000 and had cost of goods sold associated with their orders of $500,000 Answers Calculate an activity rate for Web orders ($ per order). Using an Activity Based Costing approach determine the total indirect costs assigned to the Acme Deli Using an Activity Based Costing approach determine the total indirect costs assigned to the Boson Caf Determine the overall profitability of the Acme Deli Determine the overall profitability of the Boson Caf