Score: 0 of 5 pts 1 of 18 (3 complete) HW Score: 9.51%, 4.76 of 50 pts E6-17 (similar to) Question Help Morpho Company's cost system assigns MSDA expenses to customers using a rate of 31% of sales revenue. The new controller has discovered that Morpho's customers differ greatly in their ordering patterns and interaction with Morpho's sales force. Because the controller believes Morpho's cost system does not accurately assign MSDA expenses to customers, she developed an activity-based costing system to assign these expenses to customers. She then identified the following MSDA costs and additional information for two customers, Mitchem and Plank: (Click the icon to view the activity-based costs.) .: (Click the icon to view the information.) Requirements (a) Using the current cost system's approach of assigning MSDA expenses to customers using a rate of 31% of sales revenue, determine the operating profit associated with Mitchem and with Plank. (b) Using the activity-based costing information provided, determine the operating profit associated with Mitchem and with Plank (c) Which of the two methods produces more accurate assignments of MSDA expenses to customers? Explain. Requirement (a) Using the current cost system's approach of assigning MSDA expenses to customers using a rate of 31% of sales revenue, determine the operating profit associated with Mitchem and with Plank. (Round the profit percentages to two decimal places, X.XX%.) Mitchem Plank 0 Data Table - X Sales Data Table Cost of goods sold Gross margin MSDA expenses Sales representative travel $ Mitchem 6,000 $ 10,000 Sales $ Plank 36,000 95,000 11,000 68,000 Mitchem 350,000 $ 240,000 Plank 300,000 100,000 Service customers Operating profit Profit percentage Cost of goods sold C % Handle customer orders 500 29,000 Ship to customers Print Done Print Done Enter any number in the edit fields and then click Check Answer. parts remaining 2 Check Answer Clear All