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Scholfield 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
Scholfield 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:
cholfield Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system as 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 Processing batches Processing orders Serving customers Direct labor-hours (DLHs) Number of batches Number of orders Number of customers 6.55 per DLH $138.20 per batch $ 52.60 per order $1,191.00 per customer he cost of serving customers, $1,191.00 per customer, is the cost of serving a customer for one year. atif Corporation buys only one of the company's products which Scholfield Enterprises sells for $15.60 per unit. Last year Latif orporation ordered a total of 1,100 units of this product in 2 orders. To fil the orders, 7 batches were required. The direct materials cost is $7.85 per unit and the direct labor cost is $1.90 per unit. Each unit requires 0.10 DLHs. ccording to the ABC system, the total cost of the activity "Supporting assembly" for this customer this past year was closest to: Multiple ChoiceStep by Step Solution
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