Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ScholfeldEnterpnises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four actvity cost pools for assigning costs
ScholfeldEnterpnises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four actvity cost pools for assigning costs to products and customers. Details conceming that ABC system are listed below Activity Cost Pool Supporting assembly Processing batches Processing orders Serving customers Activity Heasure Activity Rate Direct labor-hours (DLHs) 6.55 per DLH Number of batches Number of orders Number of customers 138.20 per batch 52.60 per order $1,191.e0 per customer The cost of serving customers, $1,191.00 per customer, Is the cost of serving a customer for one year Latif Corporstion buys only one of the company's products which ScholfieldEnterprises sells for $15.6Oper unit. Last year Latif direct materials cost Is $7.85per unit and the direct labor cost Is $1.90per unit. Each unit requires 0.10DLHs n ordered a total of 1,100units of this product In 2orders. To fill the orders, 7batches were required. The According to the ABC system, the total cost of the activity "Processing batches" for this customer this past year was closest to Multiple Choice $96740 $1.020.00 $5260 $138.20
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