Allocating selling and administrative expenses using activity$-$based costing

shrute Inc. manufactures office coplers, which are sold to retallers. The price and cost of goods sold for each copler are as follows:

Required:

Determine the activily rates for each of the three nonmanufacturing activitles. Round to the nearest whole dollar

$\backslash$table$[[$Activity Rate$],[$Customer Service$],[$Sales Order Processing$],[$Advertising Support$],[2.$ Determine the activity costs allocated to the three customers, using the activity rates in $(1).],[$The Warehouse$],[$Kosmo Co$.],[$Supply Universe$]]$

Construct customer profltability 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 operating income assoclated with each customer.

Shrute Inc.

Customer Profitability Report

For the Year Ended December $31$