Scholfield 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:Activity Cost PoolActivity MeasureActivity RateSupporting assemblyDirect labor-hours (DLHs)$6.55per DLHProcessing batchesNumber of batches$138.20per batchProcessing ordersNumber of orders$52.60per orderServing customersNumber of customers$1,191.00per customerThe 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 Scholfield Enterprises sells for $15.60 per unit. Last year Latif Corporation ordered a total of 1,100 units of this
product in 2 orders. To fill the orders, 7 batches were required. The direct materials cost is $7.85 per unit and the direct labor cost is $1.90 per unit. Each unit requires 0.10 DLHs.According to the ABC system, the total overhead cost for this customer this past year was closest to:
A. $2,984.10
B. $10,725.00
C. $13,709.10
D. $1,793.10
Answer: A
You might also like to view...
Among the assets listed below, which one is considered the most liquid?
a. Cash b. Accounts receivable c. Merchandise inventory d. Prepaid expenses
According to BrandAsset® Valuator model, declining brands show ________
A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still B) high relevance — appropriateness of brand's appeal — a lower level of energy and differentiation, and even lower knowledge C) high levels on energy, differentiation, relevance, knowledge, and esteem D) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still E) high knowledge — evidence of past performance — a lower level of esteem, and even lower relevance, energy, and differentiation
You are using the grapevine when you
A) ask top management, during a company meeting, about the company's recent merger. B) write a memo to your boss suggesting how to publicize the company's recent merger. C) post a news release on your company's website announcing its recent merger. D) write an article for your company's newsletter, quoting the CEO's comments about the recent merger. E) discuss the company's recent merger while you carpool with a coworker.
A person who signs an instrument without authorization can be held personally liable for payment by a holder in due course
Indicate whether the statement is true or false