Delauder 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 Supporting assembly Processing batches Processing orders Serving customers Activity Measure Direct labor-hours (DLHS) Number of batches. Number of orders. Number of customers GAMIS The cost of serving customers, $1,608.00 per customer, is the cost of serving a customer for one year. Grennon Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: Number of units purchased. Number of batches 1,500 units Activity Rate $ 3.45 per DLH $ 193.30 per batch $83.05 per order $ 1,608.00 per customer 5 batches. 2 orders Number of orders Direct labor-hour requirement Selling price $ 18.55 per unit. Direct materials cost $ 8.35 per unit $3.95 per unit Direct labor cost According to the activity-based costing system, the total cost of the activity "Supporting assembly for this customer this past year was closest to 0.25 DLHS per unit

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyz…