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Strama, Inc., manufactures and sells two products: Product A6 and Product 15. The company has an activity-based costing system with the following activity cost pools,
Strama, Inc., manufactures and sells two products: Product A6 and Product 15. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Activity Overhead Pools Measures Cost Product A6 Product 15 Total Labor-related DLHs $186,138 7,700 2,300 10,000 Production orders orders 42,124 650 8501 , 500 Order size MHS 178,147 5,100 5,200 10,300 $406, 409 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Choice O $22.15 per MH $80.93 per MH o $40.64 per MH o o $17.30 per MH
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