Question 6:

Bertsche Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has two 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)	$	3	per DLH
Processing orders	Number of orders	$	100	per order

Yousif Corporation buys one of the Bertsche's products. Last year Yousif Corporation ordered a total of 200 units of this product in 3 orders. The direct materials cost is $5 per unit and the direct labor cost is $10 per unit. Each unit requires 2 DLHs.

According to the ABC system, the total cost of the activity "Supporting assembly" for this customer this past year was closest to:

A. 1200

B 300

C $600

D $4200