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Strama, Incorporated, manufactures and sells two products: Product A6 and Product 15. The company has an activity- based costing system with the following activity cost
Strama, Incorporated, 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: Activity Cost Pools Labor-related Production orders Order size Multiple Choice O $20.63 per MH $66.25 per MH The activity rate for the Order Size activity cost pool under activity-based costing is closest to: $37.63 per MH Activity Measures $16.01 per MH DLHs orders MHS Estimated Overhead Cost $ 192, 138 45,124 184, 147 $ 421,409 Expected Activity Product 15 2,900 1,150 5,800 Product A6 8,300 950 5,700 Total 11, 200 2,100 11,500
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