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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

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 an customers. Details concerning that activity-based costing system are listed below:
\table[[Activity Cost Pool,Activity Measure,Activity Rate],[Supporting assembly,Direct labor-hours (DLHs),$6.55 per DLH],[Processing batches,Number of batches,$138.20 per batch],[Processing orders,Number of orders,$52.60 per order],[Serving customers,Number of customers,$1,191.00 per customer]]
The cost of serving customers, $1,191.00 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 $15.60 per unit. Last year Latif Corporation ordered a total of 1,100units of this product in 2orders. To fill 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 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 Cholce
$967.40
$1,020.00
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