Scholfield 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 that activity$-$based costing system are listed below:

Activity Cost Pool Activity Measure Activity Rate

Supporting assembly Direct labor$-$hours $($DLHs$)$ $ $6\mathrm{.}55$ per DLH

Processing batches Number of batches $ $138\mathrm{.}20$ per batch

Processing orders Number of orders $ $52\mathrm{.}60$ per order

Serving customers Number of customers $ $1,191\mathrm{.}00$ per customer

The cost of serving customers, $$1,191\mathrm{.}00$ per customer, is the cost of serving a customer for one year.

Latif Corporation buys only one of the company$$s products which Scholfield Enterprises sells for $$15\mathrm{.}60$per unit. Last year Latif Corporation ordered a total of $1,100$units of this product in $2$orders. To fill the orders, $7$batches were required. The direct materials cost is $$7\mathrm{.}85$per unit and the direct labor cost is $$1\mathrm{.}90$per unit. Each unit requires $0\mathrm{.}10$ direct labor$-$hours.

According to the activity$-$based costing system, the total cost of the activity "Processing batches" for this customer this past year was closest to:

Multiple Choice

$$967\mathrm{.}40$

$$1,020\mathrm{.}00$

$$52\mathrm{.}60$ Incorrect

$$138\mathrm{.}20$