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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 Cost Expected Activity Product A6 Product 15 Total Labor-related DLHs $ 179,138 7,000 1,600 8,600 Production orders orders 38,624 300 500 800 Order size MHs 171,147 4,400 4,500 8,900 $ 388,909 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: $45.22 per MH $19.23 per MH $21.25 per MH $111.96 per MH
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