Not Secure v2.ce ngagenow.com Irn/takeAssignment/takeAssignment Main.do?invoker= assignments&takeAssignmentSessionLocator=assignment-take&in progress-false Chapter 18 Assignment eBook Calculator 1. EX.18-01 Construct and Interpret a Product Profitability Report, Allocating Selling and Administrative Expenses 2. EX.18-04.ALGO 3. EX.18-06.ALGO 4. EX.18-11 ALGO 5. EX.18-13.ALGO 6. EX.18-17 7. EX.18-18 ALGO 8. PR.18-01B.ALGO 9. PR.18-04B ALGO Naper Inc. manufactures power equipment. Naper has two primary products-generators and air compressors. The following report was prepared by the controller for Naper's senior marketing management for the year ended December 31: Air Generators Compressors Total Revenue Cost of goods sold Gross profit Selling and administrative expenses Income from operations $1,078,680 $1,735,840 $2,814,520 1,301,880 2,110,890 $703,630 153,930 $549,700 809,010 $269,670 $433,960 The marketing management team was concerned that the selling and administrative expenses were not traced to the products. Marketing management believed that some products consumed larger amounts of selling and administrative expense than did other products. To verify this, the controller was asked to prepare a complete product profitability report, using activity-based costing The controller determined that selling and administrative expenses consisted of two activities: sales order processing and post-sale customer service. The controller was able to determine the activity base and activity rate for each activity, as shown below Activity Sales order processing Post-sale customer service Service requests $190 per customer service request The controller determined the following activity-base usage information about each product: Activity Base Activity Rate Sales orders $50 per sales order Generators Air Compressors Number of sales orders 389 820 Check My Work Previous Next Progress: 7/9 items Assignment Score: 34.8% All work saved. Email Instructor Save and Exit Submit Assignment for Grading