Need help with questions 2 and 3
Their isn't anymore information included. That is why I am having a hard time figuring it out.
eBook Show Me How Calculator Print tem In addition, the company incurs selling and administrative expenses of $317,160. The company wishes to assign these costs to its three major retal 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 reader's sale of Shrute copiers to consumers. The budgeted activity costs and activity bases associated with these activities are: Activity Budgeted Activity Cost Activity Base Customer service Sales order processing $47,940 22,620 246,600 Number of service requests Number of sales orders Number of ads placed Advertising support Total activity cost $317,160 Activity base usage and unit volume information for the three customers is as follows: The Warehouse Kosmo Co. Supply Universe Number of service requests 180 Number of the orders 220 Number of adspaced 30 Unit volume 710 Required: 1. Determine the activity rates for each of the three nonchanufacturing activities. Round to the nearest whole della Artit Rate 1. Determine the activity rates for each of the three nonmanufacturing activities. Round to the nearest whole dolar. Activity Rate Customer Service $ 141 per serv. reg. Sales Order Processing $ 29 per bid Advertising Support $ 1,370 per customer design change 2. Determine the activity costs allocated to the three customers, using the activity rates in Activity Costs The Warehouse Kosmo Co. Supply Universe 3. Construct customer profitability reports for the three customers, dated for the year ended December 31, 2016, using the activity costs in (2). The reports should dsdose the gross profit and income from operations associated with each customer. Enter all amounts as positive numbers, except for a negative income from operations. Shrute Inc. Customer Profitability Report For the Year Ended December 31 The Warehouse Kosmo Co Supply Revenues Cost of goods sold Gross proft Seling and administrative acties: Customer service Sales ander processing Advertising support 00000 QUOD! Total seling and administrative activities Income (loss) from operations Allocating Seling and Administrative Expenses using Activity-Based Costing Shrute Inc, manufactures office copiers, which are sold to retailers. The price and cost of goods sold for each copier are as follows: Price $680 per unit Cost of goods sold 410 Gross profit $270 per unit In addition, the company nours seling and administrative expenses of $317.160. 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: cystomer 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 copers to consumers. The budgeted activity costs and activity bases associated with these activities are: Activity Customer service Sales order processing Advertig support Total activity cost Budgeted Activity Cost Activity lase Number of service requests 22.00 Number of sales anders 246.600 Number of ads placed $317,160 Activity-base usage and unit volume information for the three customers is as folows The Warehou Supply in Total Number of service requests Turer of sales diders 220 Number of ads placed 190 vitvo 710
