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Shrute Inc, manufactures office copiers, which are sold to retailers. The price and cost of goods sold for each copier are as follows Price $720
Shrute Inc, manufactures office copiers, which are sold to retailers. The price and cost of goods sold for each copier are as follows Price $720 per unlt Cost of gcods sold 430 Gross profit $290 per unit In addition, the company incurs selling and administrative expenses of $229,090. 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 mafor nonmanufacturing activities: customer service, sales order processing, end 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 acivities are: Budgeted Activity Activity Activity Base Customer service Sales order processing Advertising support Cost 531,290 24,900 172,900 5229,090 Number of service requests Number of sales orders Number of ads placed Total activity cost Activity-base usage and unit volume information for the three customers is as follows: The Warehouse 40 230 20 640 Total 210 830 130 1,920 Kosmo Co Supply Universe Number of service requests Number of sales orders Number of ads placed Unit volume Required 1. Determine the activity rates for each of the three nonmanufacturing activitles. Round to the nearest whole dollar 160 500 100 640 100 10 640 Activity Rate Customer Service Sales Order Processing Advertising Support per serv.req per bld per customer design change
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