Pedrozo, Inc., manufactures and sells two products: Product R9 and Product 03. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor- related Product testing General factory Estimated Activity Measures Overhead tests MHs DLHs $197,540 4,000 10,000 14,000 32.760 567,758 Expected Activity $798,058 Product Product Total R9 03 Activity 400 300 700 3,300 3,400 6,700

Pedrozo, Inc., manufactures and sells two products: Product R9 and Product O3. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The activity rate for tffe Labor-Related activity cost pool under activitybased costing is closest to: $81.90 per DLH $1,140.08 per DLH $14.11 per DLH $109.20 per DLH