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. Number of units purchased Number of batches. Number of orders Direct labor-hour requirement. Selling price Direct materials cost Direct labor cost 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: 1,500 units 5 batches 2 orders. Activity Rate $ 3.45 per DLH $ 193.30 per batch $83.05 per order. $ 1,608.00 per customer 0.25 DLHS per unit. $ 18.55 per unit $ 8.35 per unit $3.95 per unit. According to the activity-based costing system, the total overhead cost for this customer this past year was closest to:

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. Number of units purchased Number of batches. Number of orders Direct labor-hour requirement. Selling price Direct materials cost Direct labor cost 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: 1,500 units 5 batches 2 orders. Activity Rate $ 3.45 per DLH $ 193.30 per batch $83.05 per order. $ 1,608.00 per customer 0.25 DLHS per unit. $ 18.55 per unit $ 8.35 per unit $3.95 per unit. According to the activity-based costing system, the total overhead cost for this customer this past year was closest to:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...

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