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Privott, Incorporated, manufactures and sells two products: Product 29 and Product NO. The company is considering adopting an activity-based costing system with the following
Privott, Incorporated, manufactures and sells two products: Product 29 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 Fools Activity Measures Labor-related DLES Estimated Overhead Cost $341,018 Expected Activity Product 29 8,100 Product NO 4,700 Total 12,800 Product testing Order size tests 54,247 479,608 1,250 1,350 2,600 5,700 6,000 11,700 $ 874,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
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