Business, 26.06.2020 22:01, winterrs12

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 Per Unit Total Direct Labor-Hours Product E0 300 9.0 2,700 Product N0 1,000 8.0 8,000 Total direct labor-hours 10,700 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 E0 Product N0 Total Labor-related DLHs $ 296,390 2,700 8,000 10,700 Production orders orders 55,587 300 400 700 Order size MHs 579,866 5,000 4,700 9,700 $ 931,843 The activity rate for the Order Size activity cost pool under activity-based costing is closest to:-. A. $59.78 per MH
B. $87.09 per MH
C. $44.16 per MH
D. $37.05 per MH

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