t7

Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. 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 Q5	Product J0	Total
Labor-related	DLHs	$	191,748	3,000	2,800	5,800
Production orders	orders		70,536	300	500	800
Order size	MHs		295,592	4,300	4,500	8,800
		$	557,876

The activity rate for the Order Size activity cost pool under activity-based costing is closest to:

Multiple Choice

• $36.23 per MH

• $68.48 per MH

• $96.19 per MH

• $33.59 per MH