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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 (DLHs) required to produce that output appear below: Direct Labor- Expected Hours Per Production Unit 450 10.5 1,750 9.5 Total Direct Labor- Hours 4,725 16,625 21,350 Product EO 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 Estimated Activity Overhead Activity Cost Pools Measures Cost Labor-related DLHS $ 303,890 Production orders orders 63,087 Order size MHS 587,366 $954, 343 Product EO Product NO 4,725 16,625 1,050 1,150 5,750 5,450 Total 2 1,350 2,200 11,200 The activity rate for the Order Size activity cost pool under activity-based costing is closest to

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