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Privott, Inc., manufactures and sells two products: Product Z9 and Product NO. The company is considering adopting an activity-based costing system with the following
Privott, Inc., manufactures and sells two products: Product Z9 and Product NO. 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 Order size Estimated Expected Activity Activity Overhead Measures DLHs tests MHs Cost $330,018 48,747 474,108 $852,873 Product Z9 7,000 700 Product NO 3,600 Total 10,600 800 1,500 4,600 4,900 9,500 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
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