Questions: Privott, Incorporated, 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: Activity Cost Pools Activity Measures Estimated Overhead Cost Product Z9 Product N0 Total -------------------------------------------------------------------------------------------- Labor-related DLHs 325,018 6,500 3,100 9,600 Product testing tests 46,247 450 550 1,000 Order size MHs 471,608 4,100 4,400 8,500 842,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

Transcript text: Midterm Exam: Chapters 1-4, 6-7 1 Saved Help Save \& Exit Submit 19 01:09:08 Privott, Incorporated, 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: \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{Activity Cost Pools} & \multirow[b]{2}{*}{\begin{tabular}{l} Activity \\ Measures \end{tabular}} & \multirow[t]{2}{*}{Estimated Overhead Cost} & \multicolumn{3}{|c|}{Expected Activity} \\ \hline & & & Product Z9 & Product N0 & Total \\ \hline Labor-related & DLHs & \$ 325,018 & 6,500 & 3,100 & 9,600 \\ \hline Product testing & tests & 46,247 & 450 & 550 & 1,000 \\ \hline Order size & MHs & 471,608 & 4,100 & 4,400 & 8,500 \\ \hline & & \$ 842,873 & & & \\ \hline \end{tabular} The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Multiple Choice