Bertsche 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)$3.20per DLHProcessing batchesNumber of batches$103.80per batchProcessing ordersNumber of orders$98.65per orderServing customersNumber of customers$1,488.00per customerThe cost of serving customers, $1,488.00 per customer, is the cost of serving a customer for one year.Yousif Corporation buys only one of the company's products which Bertsche Enterprises sells for $25.00 per unit. Last year Yousif Corporation ordered a total of 900 units of this
product in 3 orders. To fill the orders, 11 batches were required. The direct materials cost is $8.20 per unit and the direct labor cost is $7.65 per unit. Each unit requires 0.40 DLHs.According to the ABC system, the total cost of the activity "Supporting assembly" for this customer this past year was closest to:
A. $1.28
B. $360.00
C. $1,152.00
D. $2,880.00
Answer: C
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