Question

The total cost in the Product Design cost pool is $200,000 with a total activity of 1,600 designs. The total cost assigned to a customer who has 7 designs done is $____.

Answer 1

To calculate the total cost assigned to a customer who has 7 designs done, divide the total cost in the Product Design cost pool by the total activity. Then, multiply the cost per design by the number of designs.

Step-by-step explanation:

To calculate the total cost assigned to a customer who has 7 designs done, we need to find the cost per design. We can do this by dividing the total cost in the Product Design cost pool ($200,000) by the total activity (1,600 designs). The cost per design is $125 ($200,000 ÷ 1,600 designs).

Now we can calculate the total cost assigned to a customer with 7 designs. We multiply the cost per design ($125) by the number of designs (7), which gives us a total of $875.

Therefore, the total cost assigned to a customer who has 7 designs done is $875.