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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

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 360 9.6 3,456
Product N0 1,300 8.6 11,180
Total direct labor-hours 14,636

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 $ 299,390 3,456 11,180 14,636
Production orders orders 58,587 600 700 1,300
Order size MHs 582,866 5,300 5,000 10,300
$ 940,843

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

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