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Chrzan, Inc., manufactures and sells two products Product EO and Product NO. Data concerning the expected production of each product and the expected total direct

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Chrzan, Inc., manufactures and sells two products Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DL.Hs) required to produce that output appear below: Direct Labor- Expected Hours Per Production Unit 320 9.2 1,100 8.2 Total Direct Labor- Hours 2,944 9,020 11,964 Product ED Product NO Total direct labor-hours The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Meanures DLS orders Estimated Overhead Cost $297,390 56,587 580.866 $934, 843 Product EO Product NO 2,944 9,020 400 500 5.100 4.800 Total 11,964 900 9,900 The activity rate for the Order Size activity cost pool under activity based costing is closest to The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Choice 562 57 per MH $58.67 MH 578 M 5327 per

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