XYZ Inc., manufactures and sells two products: Product B7 and Product Z5. 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 B7 300 5.0 1,500 Product Z5 800 3.0 2,400 Total direct labor-hours 3,900 The direct labor rate is $15.10 per DLH. The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity cost pools Activity measures Estimated overhead cost Expected activity Product B7 Product Z5 Labor-related DLHs $39,585 1,500 2,400 Production orders Orders $26,884 500 600 Order size MHs $462,768 4,600 4,700 The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:
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