Reference no: EM132553009

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 Pool                     Activity Measure             Activity Rate          Supporting assembly

Direct labor-hours                     (DLHs)                       $6.55                       per  DLH

Processing batches                     Number of batches         $138.20                  per batch

Processing orders                   Number of orders                   $52.60                  per order

Serving customers                    Number of customers             $1,191.00                per customer

The 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 0.10D LHs.

Question 1: According to the ABC system, the total overhead cost for this customer this past year was closest to: