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Leber 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
Leber 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 Activity Rate Activity Measure Direct labor-hours (DLHS) Number of batches Number of orders Supporting assembly Processing batches Processing orders Skipped $ 5.65 per DLH $ 180.00 per batch $ 68.55 per order per $2,423.00 customer Serving customers Number of customers The cost of serving customers, $2,423.00 per customer, is the cost of serving a customer for one year. Solecki 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 900 units 4 batches 1 order 0.20 DLHS per unit $30.00 per unit $ 6.65 per unit $ 3.85 per unit According to the ABC system, the total overhead cost for this customer this past year was closest to: Multiple Choice $1805.55 0 $4,228.55 0 $13,678.55 0 C o $9.450.00
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