Pilkerton 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)	$ 2.50	per DLH
Processing batches	Number of batches	$ 101.80	per batch
Processing orders	Number of orders	$ 72.05	per order
Serving customers	Number of customers	$ 2,533.00	per customer

The cost of serving customers, $2,533.00 per customer, is the cost of serving a customer for one year.

Christoforou Corporation buys only one of the companys products which Pilkerton Enterprises sells for $21.65 per unit. Last year Christoforou Corporation ordered a total of 1,300 units of this product in 3 orders. To fill the orders, 10 batches were required. The direct materials cost is $6.60 per unit and the direct labor cost is $2.75 per unit. Each unit requires 0.15 Direct labor-hours.

According to the ABC system, the total overhead cost for this customer this past year was closest to:

Multiple Choice

• $1,721.65

• $16,409.65

• $4,254.65

• $12,155.00