Business, 30.07.2021 02:10, jonathankingsberry52

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Activity Estimated Expected Activity
Pools Measures Overhead Cost Product 29 Product NO Total
Labor-related DLHs $335,018 7,500 4,100 11,600
Product testing tests 51,247 950 1,050 2,000
Order size MHs 476,608 5,100 5,400 10,500
$862,873

The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

a. $28.88 per DLH
b. $48.81 per DLH
c. $53.94 per DLH
d. $43.44 per DLH

Answers: 2

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The company is considering adopting an activity-based costing system with the following activity cos...