SchoeloEnter prises makes a veriety of products that it sells to other bushesses

Question

SchoeloEnter prises makes a veriety of products that it sells to other bushesses The compeny's ectwtybesed costing system has four ectvity cost paols for ossioning costs to preducts and customers. Detais concerning thet ABC systen ere lsted below netivity Supporting a88erbly Processiog betehee Serving eustoners uber of eustomere coat Foal Activity Moasuro activity Rate Direet labor-houre .55 per DLH usber of batehes uber of ordors 139.20 per bateh 2.60 par order 1,191.00 per cuetoner The cost of serving customers, S119100 per customer, is the cost of serving e customer for one yeer Latif Co o tion buy only one af tme com pony's podcts which Scho ne dE te r es sel lor S15 Oper unit Lsty a Lat" $1.90per unit Eech unit requines 0100LHs. omo ation ordered a total af UODunits ar ttis roduct l 20 d 0 flil the ord 7aatches were requi %, d The drect m terlals cost ls 7 Spar ut nd tme direct soo cost According to the AC system the total overhed cost for ths customer this past year wes closest to: 10.720.00 $1,793

Explanation / Answer

Calculate total overhead cost :

720.50

967.40

so answer is a) 2984.10

Total overhead cost Supporting assembly (1100*.1*6.55)

720.50

Processing batches (138.50*7)

967.40

Processing order (52.60*2) 105.20 Serving customer (1191*1) 1191 Total overhead cost 2984.10

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