U W Calculator Printem Allocating Selling 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 Cost of goods sold $1,110 per unit 682 Gross profit $428 per unit In addition, the company incurs selling and administrative expenses of 5414.030. The company wishes to assign these costs to its three major retail customers. The Warehouse, Komo com 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 coplers 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 Advertising support $76.660 25.920 Number of service requests Number of sales orders Number of ads placed Total activity cost 5414,030 Activity-bate usage and unt volume information for the three customers is as follow The Warehouse Kosmo Co Supply Universe Total Number of service este 300 Number of de plata Required: 1. Determine the activity rates for each of the three nonmanufacturing activities. Round to the nearest whole dollar Activity Rate Customer Service per serv.req. Sales Order Processing per sis. order Advertising Support per ad 2. Determine the activity costs allocated to the three customers, using the activity rates in Activity Casts The Warehouse Kosmo Co. Supply Universe 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 profit and income from operations associated with each customer. Enter all amounts as positive numbers Shrute Inc. Customer Profitability Report For the Year Ended December Como Coseply Universe Profitability Report Cost of goods sold Gross proft Selling and administrative activities: Customer service cost Sales order processing cost Advertiang support cost Total selling and administrative Income from operations