Cumberland Enterprises makes a variety of products that it sells to other businesses. The companys 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 Cost Pool	Activity Measure	Activity Rate
Supporting assembly	Direct labor-hours (DLHs)	$ 5.65	per DLH
Processing batches	Number of batches	$ 146.65	per batch
Processing orders	Number of orders	$ 80.05	per order
Serving customers	Number of customers	$ 2,663.00	per customer

The cost of serving customers, $2,663.00 per customer, is the cost of serving a customer for one year.

Steckman Corporation buys only one of the companys products which Cumberland Enterprises sells for $22.05 per unit. Last year Steckman Corporation ordered a total of 1,200 units of this product in 4 orders. To fill the orders, 8 batches were required. The direct materials cost is $7.65 per unit and the direct labor cost is $5.20 per unit. Each unit requires 0.30 DLHs.

According to the ABC system, the customer margin for this customer this past year was closest to:

Multiple Choice

• $11,040.00

• $4,849.60

• $20,269.60

• $17,280.00