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:

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

Multiple Choice

$85.78 per MH

$77.72 per MH

$171.90 per MH

$145.33 per MH

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: Direct Total Labor- Direct Expected Hours Per Labor- Hours 5,400 1,800 7,200 Production Product El Product A7 Total direct labor-hours 900 600 Unit 6.0 3.0 The direct labor rate is $26.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $226.00 $214.00 Product El Product A7 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Activity Overhead Activity Cost Pools Measures Labor-related Machine setups Order size Cost Product El Product A7 Total 7,200 1,600 7,100 DLHs $ 139,9005,400 1,000 3,100 65,970 1,031,820 $1,237,690 1,800 600 4,000 setups MHS The activity rate for the Order Size activity cost pool under activity-based costing is closest to