ScholfieldEnterprises Makes a Variety of Products That It Sells to Other

question 198

Multiple Choice

ScholfieldEnterprises 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, $1,191.00 per customer, is the cost of serving a customer for one year.Latif Corporation buys only one of the company's products which ScholfieldEnterprises sells for $15.60per unit. Last year Latif Corporation ordered a total of 1,100units of this product in 2orders. To fill the orders, 7batches were required. The direct materials cost is $7.85per unit and the direct labor cost is $1.90per unit. Each unit requires 0.10 direct labor-hours.According to the activity-based costing system, the total cost of the activity "Processing batches" for this customer this past year was closest to:

• A) $967.40
• B) $1,020.00
• C) $52.60
• D) $138.20

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Definitions:

Rods and Cones

Specialized cells in the retina of the eye, where rods are responsible for vision at low light levels, and cones are responsible for color vision and detail.

Blind Spot

The area in the visual field that lacks light-detecting photoreceptor cells, where the optic nerve passes through the optic disc of the retina.

Robert Sternberg

An American psychologist known for his theory on the triarchic theory of intelligence, which includes analytical, creative, and practical components.

Creative Intelligence

The ability to produce work that is both novel and appropriate in the context of its use.