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QUESTION 3 Bertsche Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools
QUESTION 3 Bertsche 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. Detals concerning that ABC system are listed below. Activity Cost Pool Activity Measure Activity Rate Supporting assembly Direct labor hours (DHS) $ 3.20 per DUH Processing batches Number of batches 103.20 per barch Processing orders Number of orders $ 98.65 per order Serving customers Number of customers $ 1,418.00 per customer The cost of serving customers, 51,488.00 per customer, is the cost of serving a customer for de ya Yourt Corporation buys only one of the company's products which Bertsche Enterprises sells for $25.00 per unit Last year Yousif Corporation ordered a ton of 900 units of this product in orders. To fill the orders, 11 batches were required. The direct materials costs 5820 per unit and the direct labor cost 57.65 per unit. Each unit requires 0,40 DLHS According to the ABC System, the total cost of the activity Supporong assembly for this customer this past year was closest to $1.152.00
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