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Print Item Shrute Inc. manufactures office copiers, which are sold to retailers. The price and cost of goods sold for each copier are as follows

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Print Item Shrute Inc. manufactures office copiers, which are sold to retailers. The price and cost of goods sold for each copier are as follows $660 per unit Cost of goods sold 400 $260 per unit In addition, the company incurs selling and administrative expenses of $226,620. The company wishes to assign these costs to its three major retail coustomers, 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 assodiated with these activities are: Budgeted Activity Cost Activity Base $40,020 Sales order processing Number of sales orders Advertising support 159,600 Number of ads placed Total activity cost $226,620 10 220 Number of sales orders 250 110 540 120 Number of ads placed 720 2.160 Required t>

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