Privott, Inc., manufactures and sells two products: Product Z9 and Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Cost $ 333,018 se,247 Measures Product 29 Product NO Total DLHS 7,300 3,900 11,200 1,800 10,100 Product testing tests 850 950 Order size MHs 475,608 4,900 5, 200 $ 858,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to
Privott, Inc., manufactures and sells two products: Product Z9 and Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Cost $ 333,018 se,247 Measures Product 29 Product NO Total DLHS 7,300 3,900 11,200 1,800 10,100 Product testing tests 850 950 Order size MHs 475,608 4,900 5, 200 $ 858,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Privott, Inc., manufactures and sells two products: Product Z9 and Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and
expected activity:
Estimated
Expected Activity
Activity
Overhead
Activity Cost Pools
Measures
Cost
$ 333,018
50, 247
Product 29
Product NO
Total
Labor-related
DLHS
11,200
1,800
7,300
3,900
Product testing
Order size
tests
850
950
MHs
475,608
4,900
5,200
10,100
$ 858,873
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
Multiple Choice
$52.89 per DLH
$47715 per DLH
$59.11 per DLH
$29.73 per DLH
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