Delauder Enterprises Makes a Variety of Products That It Sells

question 101

Multiple Choice

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 total cost of the activity "Processing batches" for this customer this past year was closest to:

• A) $1,049.55
• B) $83.05
• C) $193.30
• D) $966.50

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