Snavely, Incorporated, 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	1,200	4.0	4,800
Product A7	200	2.0	400
Total direct labor-hours			5,200

The direct labor rate is $26.20 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product E1	$ 228.00
Product A7	$ 300.00

The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Activity Cost Pools	Activity Measures	Estimated Overhead Cost	Expected Activity
			Product E1	Product A7	Total
Labor-related	DLHs	$ 127,800	4,800	400	5,200
Machine setups	setups	60,270	1,300	200	1,500
Order size	MHs	942,670	3,900	3,500	7,400
		$ 1,130,740

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

Multiple Choice

$319.50 per MH

$127.39 per MH

$72.33 per MH

$217.45 per MH