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Business, 07.05.2021 22:40 wendisp54x2h

Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product Z9 Product N0 Total
Labor-related DLHs $ 337,018 7,700 4,300 12,000
Product testing tests 52,247 1,050 1,150 2,200
Order size MHs 477,608 5,300 5,600 10,900
$ 866,873
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
A. $45.43 per DLH
B. $394.03 per DLH
C. $49.76 per DLH
D. $28.08 per DLH

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