Privott, Incorporated, manufactures and sells two products: Product 29 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

Labor-related

Product testing

Order size

Multiple Choice

$27.34 per DLH

$42.60 per DLH

$362.86 per DLH

Activity

Measures

SA6 30 nar DI H

DLHS

tests

MHS

The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

Estimated

Overhead

Cost

$ 339,018

53,247

478,608

$ 870,873

Expected Activity

Product 29 Product NO

7,900

4,500

1,150

1,250

5,500

5,800.

Total

12,400

2,400

11,300