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Strama, Inc., manufactures and sells two products: Product A6 and Product I5. 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 I5. 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 A6 | Product I5 | Total | |
| Labor-related | DLHs | $ | 191,138 | 8,200 | 2,800 | 11,000 |
| Production orders | orders | 44,624 | 900 | 1,100 | 2,000 | |
| Order size | MHs | 183,147 | 5,600 | 5,700 | 11,300 | |
| $ | 418,909 | |||||
| | ||||||
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
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