question archive Delauder Enterprises makes a variety of products that it sells to other businesses
Delauder Enterprises makes a variety of products that it sells to other businesses
Subject:BusinessPrice: Bought3
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 Activity Rate $ 3.45 per DLH $ 193.30 per batch $ 83.05 per order $ 1,608.00 per customer 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 Number of orders Direct labor-hour requirement Selling price Direct materials cost Direct labor cost 1,500 units 5 batches 2 orders 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 customer margin for this customer this past year was closest to: Multiple Choice $9,375.00 O $5.340.65 According to the activity-based costing system, the customer margin for this customer this past year was closest to: Multiple Choice $9,375.00 $5.340.65 $23,790.65 $15,300.00
