Digerolamo 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)	$ 3.55	per DLH
Processing batches	Number of batches	$ 189.35	per batch
Processing orders	Number of orders	$ 59.35	per order
Serving customers	Number of customers	$ 1,159.00	per customer

The cost of serving customers, $1,159.00 per customer, is the cost of serving a customer for one year.

Carlacci Corporation buys only one of the companys products which Digerolamo Enterprises sells for $18.85 per unit. Last year Carlacci Corporation ordered a total of 1,500 units of this product in 4 orders. To fill the orders, 9 batches were required. The direct materials cost is $8.15 per unit and the direct labor cost is $2.60 per unit. Each unit requires 0.15 DLHs.

According to the ABC system, the total cost of the activity "Processing batches" for this customer this past year was closest to:

Multiple Choice

• $1,763.50

• $1,704.15

• $59.35

• $189.35