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 ABC system are listed below: 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:
According to the ABC system, the total cost of the activity "Supporting assembly" for this customer this past year was closest to:

Question

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 ABC system are listed below:  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:
 According to the ABC system, the total cost of the activity "Supporting assembly" for this customer this past year was closest to:

Quizplus · Accepted Answer

Supporting assembly = $3.45 per DLH × 0.25 DLHs per unit × 1,500 units = $1,293.75

Delauder Enterprises Makes a Variety of Products That It Sells