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Pilikerton Enterprises makes a variety of products that it sells to other businesses. The company's actvity-based costng system has four activity cOst pools for assigning
Pilikerton Enterprises makes a variety of products that it sells to other businesses. The company's actvity-based costng system has four activity cOst pools for assigning costs to producis and customers. Details concening that ABC system are llsted below Activity Cost Pool Activity Measure Activity Rate Supporting assembly Processing batches Processing orders Serving customers Direct labor-hours (DLHs) 2.5 per DLH Number of batches Number of orders Number of customers $ 101.88 per batch $ 72.0s per order $2,533.ea per customer The cost of serving customers, $2 533.00 per customer, is the cost of serving a customer for one year ordered a total of 1,300 units of this product In 3 orders. To fill the orders, 10 batches Christoforou Corporation buys only one of the company's products which Plkerton Enterprises sells for $2165 per unit. Last year Christoforou C were required. The direct msterlals cost is $6.60 per unlt and the direct labor cost Is $2.75 per unlt. Each unlt requlres 0.15 DLHs. According to the ABC system, the total overhead cost for this customer this past year was closest to: Multiple Choice $4.254.65 S172165 $12155.00 $16.409.65
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