Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. 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 E1	1,000	10.0	10,000
Product A7	200	5.0	1,000
Total direct labor-hours			11,000

The direct labor rate is $25.00 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product E1	$233.00
Product A7	$200.00

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 E1	Product A7	Total
Labor-related	DLHs	$	135,700	10,000	1,000	11,000
Machine setups	setups		64,000	1,100	200	1,300
Order size	MHs		1,001,010	2,800	3,200	6,000
		$	1,200,710

The activity rate for the Order Size activity cost pool under activity-based costing is closest to:

rev: 03_25_2018_QC_CS-119201

Multiple Choice

• $135.70 per MH

• $166.84 per MH

• $90.77 per MH

• $109.16 per MH