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Schoeninger, Inc., manufactures and sells two products: Product X1 and Product I6. The company has an activity-based costing system with the following activity cost pools,

Schoeninger, Inc., manufactures and sells two products: Product X1 and Product I6. The company has 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 X1 Product I6 Total
Labor-related DLHs $293,231 700 9,000 9,700
Machine setups setups 74,767 600 500 1,100
General factory MHs 268,830 4,300 4,400 8,700
$636,828

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

$124.61 per DLH

$30.23 per DLH

$578.93 per DLH

$149.53 per DLH

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