Wanger, Inc., manufactures and sells two products: Product G1 and Product F2. 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-HoursProduct G1800 9.0 7,200 Product F2800 11.0 8,800 Total direct labor-hours 16,000 The direct labor rate is $15.30 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per UnitProduct G1$100.50 Product F2$292.00 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead
CostExpected Activity???Product G1Product F2TotalLabor-relatedDLHs$732,480 7,2008,80016,000Machine setupssetups 53,809 400300700Order sizeMHs 600,525 3,8003,7007,500 $1,386,814 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
A. $1,981.16 per DLH
B. $179.36 per DLH
C. $45.78 per DLH
D. $134.52 per DLH
Answer: C
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