t6

Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. 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 N6	Product N7	Total
Labor-related	DLHs	$	345,060	2,100	5,000	7,100
Machine setups	setups		128,534	600	800	1,400
Order size	MHs		107,598	4,100	3,800	7,900
		$	581,192

The activity rate for the Machine Setups activity cost pool is closest to:

Multiple Choice

• $73.57 per setup

• $91.81 per setup

• $26.24 per setup

• $28.32 per setup