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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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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