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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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