Larry 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, $1,913.00 per customer, is the cost of serving a customer for one year. Prosonic 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 total cost of the activity "Processing batches" for this customer this past year was closest to:

Question

Larry 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, $1,913.00 per customer, is the cost of serving a customer for one year. Prosonic 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 total cost of the activity "Processing batches" for this customer this past year was closest to:

Quizplus · Accepted Answer

Cost of processing batches = $138.35 per batch × 4 batches = $553.40

Larry Enterprises Makes a Variety of Products That It Sells