Nourse Enterprises Makes a Variety of Products That It Sells

question 23

Multiple Choice

Nourse 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, $2,026.00 per customer, is the cost of serving a customer for one year. Koerner 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 customer margin for this customer this past year was closest to:

• A) $14,670.00
• B) $10,578.55
• C) $16,020.00
• D) $19,083.55

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Definitions:

Environmental Pollutants

Substances introduced into the environment that can cause harm or discomfort to organisms, including humans.

Sickle-cell Gene

A genetic variant that affects the shape of red blood cells, causing them to assume a sickle shape, which can lead to various health complications.

Malaria

A mosquito-borne infectious disease affecting humans and other animals caused by Plasmodium parasites, characterized by fever, vomiting, and other flu-like symptoms.

Dairying

The practice of keeping and breeding dairy cattle for milk production.