Question
Activity Cost Pool Total Cost Total Activity Assembling $100726 16365 machine hours Job Support $32748 1833 jobs Customer support $5212 364 clients Other $102496 Not
Activity Cost Pool Total Cost Total Activity
Assembling $100726 16365 machine hours
Job Support $32748 1833 jobs
Customer support $5212 364 clients
Other $102496 Not applicable
The company uses an activity-based costing system for its overhead costs.
One particular customer requested 37 jobs during the year for a total of 125 units, requiring a total of 197 machine hours. Each unit requires $0.47 in direct materials and $1.65 in direct labor. The customer was charged $3731 for these jobs.
Compute the customer margin if they used traditional costing instead of ABC on the basis of machine hours. Round ONLY your final answer to the nearest whole dollar amount. Do not round intermediate calculations.
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