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Mustafa 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

Mustafa 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) $ 7.50 per DLH
Processing batches Number of batches $ 111.65 per batch
Processing orders Number of orders $ 86.00 per order
Serving customers Number of customers $ 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 companys products. The details of last years purchases of this product are listed below:

Number of units purchased 800 units
Number of batches 16 batches
Number of orders 4 order
Direct labor-hour requirement 0.40 DLHs per unit
Selling price $ 24.25 per unit
Direct materials cost $ 7.45 per unit
Direct labor cost $ 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:

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