Leber 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, $2,423.00 per customer, is the cost of serving a customer for one year. Solecki 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 overhead cost for this customer this past year was closest to:
A) $1,805.55
B) $4,228.55
C) $13,678.55
D) $9,450.00

Question

Leber 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, $2,423.00 per customer, is the cost of serving a customer for one year. Solecki 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 overhead cost for this customer this past year was closest to:
A) $1,805.55 
B) $4,228.55 
C) $13,678.55 
D) $9,450.00

Quizplus · Accepted Answer

The Answer of Leber 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, $2,423.00 per customer, is the cost of serving a customer for one year. Solecki 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 overhead cost for this customer this past year was closest to:
A) $1,805.55 
B) $4,228.55 
C) $13,678.55 
D) $9,450.00

Leber Enterprises Makes a Variety of Products That It Sells