Assume Google and Apple use activity$-$based costing to allocate customer support costs to products. For a similar laptop model, assume the companies report the following information.

Product Cost per Unit Apple Google

Direct materials $ $490$ $ $470$

Direct labor $6050$

Overhead $265260$

Total product cost $ $815$ $ $780$

Customer Support Apple Google

Annual costs $ $850,000$ $ $1,400,000$

Annual number of calls $10,00010,000$

Required:

Compute the activity rate for the customer support cost for both Apple and Google.

Prepare a customer profitability report for both Apple and Google for an order from a local college for $500$ laptops. Each unit sells for $$1,199.$ Both companies budget $500$ support calls for this order.

Which company, Apple or Google, would earn the most income from this customer?