Hudson 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 thatactivity-based costing system are listed below:
Activity Cost Pool	Activity Measure	Activity Rate
Supporting assembly	Direct labor-hours (DLHs)	$6.25	per DLH
Processing batches	Number of batches	$181.40	per batch
Processing orders	Number of orders	$54.00	per order
Serving customers	Number of customers	$2,574.00	per customer
The cost of serving customers, $2,574.00 per customer, is the cost of serving a customer for one year. Baker Corporation buys only one of the companys products. The details of last years purchases of this product are listed below:
Number of units purchased	900	units
Number of batches	9	batches
Number of orders	4	orders
Direct labor-hour requirement	0.15	DLHs per unit
Selling price	$23.95	per unit
Direct materials cost	$7.00	per unit
Direct labor cost	$2.35	per unit
Required: show your work -
a. According to the activity-based costing system, what is the cost of the Supporting assembly activity for Baker Corporation for the year?
b. According to theactivity-based costing system, what is the cost of the Processing batches activity for Baker Corporation for the year?
c. According to theactivity-based costing system, what is the cost of the Processing orders activity for Baker Corporation for the year?
d. According to theactivity-based costing system, what is the cost of the Servicing customers activity for Baker Corporation for the year?
e. What is the customer margin on sales to Baker Corporation for the year?