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Walsh 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
Walsh 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 ABC system are listed below: Activity Cost Pool Supporting assembly Activity Measure Direct labor-hours (DLHS) Activity Rate $ 6.55 per DLH Processing batches per Number of batches $ 138.20 batch Processing orders per Number of orders $ 52.60 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 1,100 units of this product in 2 orders. 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 DLHS. According to the ABC system, the total overhead cost for this customer this past year was closest to: Select one: O a. $2,984.10 O b. $1,793.10 Oc. $10,725.00 Od. $13,709.10 MesReal Air
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