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thank you Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: per
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Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: per unit 1 Price per unit 2 Cost of goods sold 5 Gross profit per unit $74,400.00 62,500.00 $11.900.00 per unit In addition, the company incurs selling and administrative expenses of $247,422. The company wishes to assign these costs to its three major custom expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are: 1 Activity 2 Customer service 3 Project bidding 4 Engineering support Total costs Budgeted Activity Base Activity Cost $93,195.00 Number of service requests 64,155.00 Number of bids 90,072.00 Number of customer design changes $247,422.00 5 1 Activity 2 Customer service 3 Project bidding Engineering support 5 Total costs Budgeted Activity Base Activity Cost $93,195.00 Number of service requests 64,155.00 Number of bids 90,072.00 Number of customer design changes $247422.00 Activity-base usage and unit volume information for the three customers is as follows: Gough Industries Breen Ine. The Martin Group 219 Total 55 53 327 38 Number of service requests Number of bids Number of customer design changes Unit volume 20 47 105 42 29 145 216 21 13 6 40 Required: 1. Determine the activity rates for each of the three nonmanufacturing activity pools. Refer to the lots of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. 2. Determine the activity costs allocated to the three customers, using the activity rates in (1). Refer to the lots of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. 3. Construct customer profitability reports for the three customers, dated for the year ended December 31, using the activity costs in (2). The reports should disclose the gross prone and income from operations associated with each customer. Refer to the Nsts of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Calons () ww automatically appear if required. Enter all amounts as positive numbers, except for a negative income from operations. 1. Determine the activity rates for each of the three nonmanufacturing activity pools, Hater to the lists of Labels and Amount Descriptions for the exact wording or the answer choices for text entries 1 Activity SActivity rates.00 2 per serv.reg per bid 1 4 per design change 2. Desormine the activity costs allocated to the thron customers, using the serwity ratos in (1). Refer to the Asts of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. 1 Activity Costs 1 Hal Step by Step Solution
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