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: 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 activity-based costing system, the customer margin for this customer this past year was closest to:
A) $9,375.00
B) $5,340.65
C) $23,790.65
D) $15,300.00

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 activity-based costing 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 activity-based costing system, the customer margin for this customer this past year was closest to:
A) $9,375.00 
B) $5,340.65 
C) $23,790.65 
D) $15,300.00

Quizplus · Accepted Answer

The Answer of 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:  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 activity-based costing system, the customer margin for this customer this past year was closest to:
A) $9,375.00 
B) $5,340.65 
C) $23,790.65 
D) $15,300.00

Delauder Enterprises Makes a Variety of Products That It Sells