Porche, Incorporated, manufactures and sells two products: Product D4 and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours 100 5.0 500 700 2.0 Product D4 Product NO Total direct labor-hours The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 1,400 1,900 Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product D4 Product NO Total DLHS $ 32,414 setups 13,445 MHS 415,905 $461,764 Labor-related Machine setups Order size 500 300 4,200 1,400 1,900 200 500 4,300 8,500 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: O $44.82 per DLH O $67.23 per DLH O $17.06 per DLH O $923.53 per DLH

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.