Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone answer and explain please Delauder Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has

can someone answer and explain please
image text in transcribed
Delauder Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below: Activity Cont pool Supporting assembly Processing batches Processing orders Serving customers Activity Measure Direct labor-hours (DLS) Number of batches Number of ordern Number of customers Activity Rate $ 3.45 per DLHI $ 193.30 per batch $ 83.05 per order $1,508.00 per customer "The cost of serving customers. $1,608.00 per customer is the cost of serving a customer for one year. Grennon Corporation buys only one of the company's products. Grennon purchased a total of $27,825.00 worth of the product last year. Direct materials related to Grennon's purchases totoled $12,525.00 and direct labor related to Grennon's purchases totaled $5,925.00 Additional details of last year's purchases of this product are listed below. Number of batches Number of orders Direct labor-hours required 5 batches 2 orders 375 hours According to the ABC system, the customer margin for Grennon this past year was closest to

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Essentials For Hospitality Managers

Authors: Chris Guilding, Kate Mingjie Ji

4th Edition

1032024321, 9781032024325

More Books

Students also viewed these Accounting questions