Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 4 Mcinture 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 4 Mcinture 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 thatactivity-based costing system are listed below: 15 points Activity Cost Pool Activity Measure Activity Rate Supporting assembly Direct labor-hours (DLHS) $ 4.20 per DLH Processing batches Number of batches $123.35 per batch Processing orders Number of orders $71.00 per order Serving customers Number of customers $3,334.00 per customer The cost of serving customers, $3,334.00 per customer, is the cost of serving a customer for one year. Schwerin Corporation buys only one of the company's products which Mcinture Enterprises sells for $28.40 per unit. Last year Schwerin Corporation ordered a total of 1,100 units of this product in 2 orders. To fill the orders, 6 batches were required. The direct materials cost is $7.40 per unit and the direct labor cost is $1.80 per unit. Each unit requires 0.10 direct labor-hours. Required: What is the customer margin on sales to Schwerin Corporation for the year? SHOW YOUR WORK
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started