Porche, Inc., manufactures and sells two products: Product D4 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 D4	100	5.0	500
Product N0	700	2.0	1,400
Total direct labor-hours			1,900

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated		Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost		Product D4	Product N0	Total
Labor-related	DLHs	$	32,414	500	1,400	1,900
Machine setups	setups		13,445	300	200	500
Order size	MHs		415,905	4,200	4,300	8,500
		$	461,764

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

rev: 03_22_2018_QC_CS-119201

Multiple Choice

• $17.06 per DLH

• $44.82 per DLH

• $67.23 per DLH

• $923.53 per DLH