Business, 02.04.2020 22:10 daisyperez1

Chrzan, Inc., manufactures and sells two products: Product E0 and Product N0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

Expected Production Direct Labor-Hours/Unit Total Direct Labor-Hours
Product E0 440 10.4 4,576
Product N0 1,700 9.4 15,980
Total direct labor-hours 20,556

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Activity Measures Overhead Cost Product E0 Product N0 Total
Labor-related DLHs $ 303,390 4,576 15,980 20,556
Production orders orders 62,587 1,000 1,100 2,100
Order size MHs 586,866 5,700 5,400 11,100
$ 952,843

The activity rate for the Order Size activity cost pool under activity-based costing is closest to:

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Chrzan, Inc., manufactures and sells two products: Product E0 and Product N0. Data concerning the ex...

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