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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 activitybased costing system has four activity cost pools for assigning costs to products an customers. Details concerning that activitybased costing system are listed below:
tableActivity Cost Pool,Activity Measure,Activity RateSupporting assembly,Direct laborhours DLHs$ per DLHProcessing batches,Number of batches,$ per batchProcessing orders,Number of orders,$ per orderServing customers,Number of customers,$ per customer
The cost of serving customers, $ 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 $ per unit. Last year Latif Corporation ordered a total of units of this product in orders. To fill the orders. batches were required. The direct materials cost is $ per unit and the direct labor cost is $ per unit. Each unit requires direct laborhours.
According to the activitybased costing system, the total cost of the activity "Processing batches" for this customer this past year was closest to:
Multiple Cholce
$
$
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