Barkes, Inc., manufactures and sells two products: Product B0and Product B5. 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
Product B0	400			7.0			2,800
Product B5	500			4.0			2,000
Total direct labor-hours							4,800

The direct labor rate is $22.10 per DLH. The direct materials cost per unit is $288.10 for Product B0 and $118.90 for ProductB5.

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 B0	Product B5	Total
Labor-related	DLHs	$	136,944		2,800	2,000	4,800
Production orders	orders		64,629		500	400	900
Order size	MHs		588,294		3,300	3,000	6,300
		$	789,867

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

Multiple Choice

• a. $164.56 per MH

• b. $68.47 per MH

• c. $93.38 per MH

• d. $65.82 per MH

Answer rating: 100% (QA)

The activity rate for the O... View the full answer