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Nole, Inc., manufactures and sells two products Product W8 and Product NO. Data concerning the expected production of each product and the expected total direct

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Nole, Inc., manufactures and sells two products Product W8 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 Expected Labor-Hours Total Direct Production Per Unit Labor-Hours Product W8 100 9.0 900 Product NO 1,000 11.0 11,000 Total direct labor-hours 11,900 The direct labor rate is $17.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product W8 $ 176.40 Product NO $ 280.50 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Labor related DLHS Machine setups setups Order size MHs $ 461.720 25,865 796,220 $ 1.283.805 Expected Activity Product Product W8 NO Total 900 11.000 11.900 300 400 700 4,000 4.200 8.200 The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to: $156.56 per setup $199.06 per setup $189.58 per setup $36.95 per setup

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