Manton Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costsequipment expense and indirect laborare allocated to the three activity cost poolsProcessing, Supervising, and Otherbased on resource consumption. Data to perform these allocations appear below:

Overhead costs:

Equipment expense $ 65,000

Indirect labor $ 12,000

Distribution of Resource Consumption Across Activity Cost Pools:

Activity Cost Pools

Processing Supervising Other

Equipment expense 0.60 0.20 0.20

Indirect labor 0.10 0.30 0.60

In the second stage, Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:

MHs (Processing) Batches (Supervising)

Product Z5 8,700 3,000

Product C8 21,300 2,000

Total 30,000 5,000

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

Noreen 4e Rechecks 2017-24-03

$.18 per MH

$1.34 per MH

$1.30 per MH

$3.30 per MH