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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 pools,
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 Activity Measures Estimated Overhead Expected Activity Cost Product A6 Product I5 Total Labor-related DLHs $ 194,138 8,500 Production orders Order size orders MHs 46,124 1,050 3,100 1,250 11,600 2,300 186,147 5,900 6,000 11,900 $ 426,409 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Choice $20.19 per MH $62.63 per MH $36.76 per MH $15.64 per MH
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