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DelauderEnterprises 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
DelauderEnterprises 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 Cost Pool Activity Rate $ 3.45 per DLH Supporting assembly Processing batches Processing orders Serving customers Activity Measure Direct labor-hours (DLHS) Number of batches Number of orders Number of customers $ 193.30 per batch $ 83.05 per order $1,608.00 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. The details of last year's purchases of this product are listed below: 1,500 units 5 batches 2 orders Number of units purchased Number of batches Number of orders Direct labor-hour requirement Selling price Direct materials cost Direct labor cost 0.25 DLHS per unit $18.55 per unit $ 8.35 per unit $ 3.95 per unit According to the ABC system, the total cost of the activity "Supporting assembly" for this customer this past year was closest to: Multiple Choice O $0.86 O $5,175.00 O $1.293.75 O $375.00 Mustafa 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 Cost Pool Supporting assembly Activity Measure Direct labor-hours (DLHS) Number of batches Number of orders Number of customers Processing batches Processing orders Serving customers Activity Rate $ 7.50 per DLH $ 111.65 per batch $ 86.00 per order $2,737.00 per customer The cost of serving customers, $2,737.00 per customer, is the cost of serving a customer for one year. Dahle Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: Number of units purchased Number of batches Number of orders Direct labor-hour requirement Selling price Direct materials cost Direct labor cost 800 units 16 batches 4 order 0.40 DLHS per unit $24.25 per unit $ 7.45 per unit $ 7.85 per unit According to the ABC system, the total cost of the activity "Supporting assembly" for this customer this past year was closest to: Multiple Choice O $320.00 O $3.00 0 $6,000.00 0 $2,400.00
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