Question: Please help since I am stuck. Using the information provided in Exhibits below; 1) Allocate the selling and administrative expenses of 2020 to activity cost
Please help since I am stuck.
Using the information provided in Exhibits below;
1) Allocate the selling and administrative expenses of 2020 to activity cost pools.
2)Compute for 2020 the activity rate for each of the activity cost pools.



Exhibit 5 Distribution of Selling & Admin Resources Consumption Across Activity Cost Pools for 2020 Activities Making New Post-Sale Sales Negotiating Processing Warehousing Customer Customer Calls Contracts Orders Activities Development Shipping Service Other Total Cost items Administrative Wages 5% 5% 30% 5% 10% 10% 15% 20% 100% 20% 20% 60% 100% Advertising Salesroom Building 75% 25% 100% Depreciation Office Maintenance 65% 35% 100% Office Equipment 5% 5% 40% 20% 5% 25% 100% Depreciation Promotional Materials 50% 5% 35% 10% 100% 100% 100% Shipping Costs 100% Salesroom Property 55% 35% 10% Taxes and Insurance Salespeople Travel 50% 5% 40% 5% 100% Salesroom Utilities 25% 20% 10% 5% 40% 100% and Fuel Warehouse Wages 15% 80% 5% 100% 100% Other Administrative 100% ExpensesExhibit 4 Income Statement Items for the Years 2016 - 2020 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 SO 2020 2019 2018 2017 2016 Sales Cost of Goods Sold Gross Margin Operating Expenses Operating IncomeExhibit 3 Income Statement For Year Ended December 31, 2020 Sales 3,114, 160 Less Cost of Goods Sold 1,779,520 Gross Profit 1,334,640 Selling and Marketing Expenses: Salesroom Utilities and Fuel 6,491 Shipping Costs 42,893 Salesroom Building Depreciation 48,600 Promotional Materials 120,283 Salesroom Property Taxes and Insurance 65,283 Advertising 71,852 Salespeople Travel 92,788 Sales Staff Commissions 249,133 Less total Selling and Marketing Expenses 697,323 Administrative Expenses: Office Equipment Depreciation 8,400 Other Administrative Expenses 11,548 Office Maintenance 38,718 Warehouse Wages 152,817 Administrative Wages 368,000 Less total Administrative Expenses 579,483 Operating Income 57.834
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