Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct Z1Product Z8TotalLabor-relatedDLHs$112,1906002,0002,600Machine setupssetups 40,4405007001,200Order sizeMHs 609,7703,0003,2006,200 $762,400 The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
A. $293.23 per MH
B. $98.35 per MH
C. $56.10 per MH
D. $76.24 per MH
Answer: B
Business
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