Larry 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, $1,913.00 per customer, is the cost of serving a customer for one year. Prosonic 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 "Processing batches" for this customer this past year was closest to:
A) $138.35
B) $553.40
C) $77.00
D) $630.40

Question

Larry 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, $1,913.00 per customer, is the cost of serving a customer for one year. Prosonic 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 "Processing batches" for this customer this past year was closest to:
A) $138.35 
B) $553.40 
C) $77.00 
D) $630.40

Quizplus · Accepted Answer

The Answer of Larry 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, $1,913.00 per customer, is the cost of serving a customer for one year. Prosonic 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 "Processing batches" for this customer this past year was closest to:
A) $138.35 
B) $553.40 
C) $77.00 
D) $630.40

Larry Enterprises Makes a Variety of Products That It Sells