Question
Nole, Inc., manufactures and sells two products: Product W8 and Product N0. Data concerning the expected production of each product and the expected total direct
Nole, Inc., manufactures and sells two products: Product W8 and Product N0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W8 100 9.0 900 Product N0 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 N0 $ 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 Expected Activity Product W8 Product N0 Total Labor-related DLHs $ 461,720 900 11,000 11,900 Machine setups setups 25,865 300 400 700 Order size MHs 796,220 4,000 4,200 8,200 $ 1,283,805 The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to: rev: 03_25_2018_QC_CS-119201 Multiple Choice $156.56 per setup $199.06 per setup $189.58 per setup $36.95 per setup
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