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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
Delauder Enterprises makes a variety of products that it sells to other businesses. The company's activitybased costing system has four activity cost pools for assigning costs to products and customers. Details concerning that activitybased costing system are listed below:
tableActivity Cost Pool,Activity Measure,Activity RateSupporting assembly,Direct laborhours DLHs$ per DLHProcessing batches,Number of batches,$ per batchProcessing orders,Number of orders,$ per orderServing customers,Number of customers,$ per customer
The cost of serving customers, $ per customer, is the cost of serving a customer for one year. Grennon Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below:
tableNumber of units purchased, unitsNumber of batches, batchesNumber of orders, ordersDirect laborhour requirement, DLHs per unitSelling price,$ per unitDirect materials cost,$ per unitDirect labor cost,$ per unit
According to the activitybased costing system, the total overhead cost for this customer this past year was closest to:
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$
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