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Help Save & Privott, Incorporated, manufactures and sells two products Product 29 and Product NO. The company is considering adopting on activity-based costing system with
Help Save & Privott, Incorporated, manufactures and sells two products Product 29 and Product NO. The company is considering adopting on activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Product testing Order size Activity Measures DLHS tests Estimated Overhead Cost $ 337,018 52,247 477,608 $ 866,873 Expected Activity Product 29 Product NO Total 7,700 4,300 12,000 1,050 1,150 2,200 5,300 5,600 10,900 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to Multiple Choice $28.08 per DLH $394.03 per DLH O $49.76 per DLH
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