cholfield 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. Detalls concerning that activity-based costing system are listed below: Activity Cost Pool Supporting assembly Processing batches Activity Measure Direct labor-hours (DLHS). Number of batches. Processing orders Number of orders Serving customers Number of customers Multiple Choice O he cost of serving customers, $1,191.00 per customer, is the cost of serving a customer for one year. atif 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 e direct labor cost is $1.90 per unit. Each unit requires 0.10 direct labor-hours. ccording to the activity-based costing system, the total overhead cost for this customer this past year was closest to: O O $2.984.10 $1,793.10 $10,725.00 Activity Rate $13.709.10 $ 6.55 per DLH $ 138.20 per batch $ 52.60 per order $1,191.00 per customer
cholfield 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. Detalls concerning that activity-based costing system are listed below: Activity Cost Pool Supporting assembly Processing batches Activity Measure Direct labor-hours (DLHS). Number of batches. Processing orders Number of orders Serving customers Number of customers Multiple Choice O he cost of serving customers, $1,191.00 per customer, is the cost of serving a customer for one year. atif 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 e direct labor cost is $1.90 per unit. Each unit requires 0.10 direct labor-hours. ccording to the activity-based costing system, the total overhead cost for this customer this past year was closest to: O O $2.984.10 $1,793.10 $10,725.00 Activity Rate $13.709.10 $ 6.55 per DLH $ 138.20 per batch $ 52.60 per order $1,191.00 per customer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
9
![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 for assigning costs to products and customers. Detalls concerning that activity-based costing system are listed below:
Activity Cost Pool
Supporting assembly
Processing batches
Processing orders
Activity Measure
Direct labor-hours (DLHs)
Number of batches.
Number of orders
Serving customers
Number of customers
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 direct labor-hours.
According to the activity-based costing system, the total overhead cost for this customer this past year was closest to:
Multiple Choice
$2,984.10
$1,793.10
$10,725.00
Activity Rate
$6.55 per DLH
$138.20 per batch.
$ 52.60 per order
$1,191.00 per customer
$13,709.10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2e525a9e-1ca8-4f15-afa0-8bbbcdefcd58%2F091e4720-18ec-4a2a-90f6-4265a8f27229%2Fv2m19v_processed.png&w=3840&q=75)
Transcribed Image Text: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 for assigning costs to products and customers. Detalls concerning that activity-based costing system are listed below:
Activity Cost Pool
Supporting assembly
Processing batches
Processing orders
Activity Measure
Direct labor-hours (DLHs)
Number of batches.
Number of orders
Serving customers
Number of customers
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 direct labor-hours.
According to the activity-based costing system, the total overhead cost for this customer this past year was closest to:
Multiple Choice
$2,984.10
$1,793.10
$10,725.00
Activity Rate
$6.55 per DLH
$138.20 per batch.
$ 52.60 per order
$1,191.00 per customer
$13,709.10
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