Question
Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity
Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. 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 Z9 Product N0 Total Labor-related DLHs $ 331,018 7,100 3,700 10,800 Product testing tests 49,247 750 850 1,600 Order size MHs 474,608 4,700 5,000 9,700 $ 854,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: rev: 03_25_2018_QC_CS-119201 Multiple Choice $534.30 per DLH $57.94 per DLH $30.65 per DLH $65.66 per DLH
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