Barkes, Inc., manufactures and sells two products: Product B0 and 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-HoursProduct B0400 7.0 2,800 Product B5500 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 Product B5.The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead CostExpected Activity???Product B0Product
B5TotalLabor-relatedDLHs$136,944 2,8002,0004,800Production ordersorders 64,629 500400900Order sizeMHs 588,294 3,3003,0006,300 $789,867 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
A. $161.57 per DLH
B. $129.26 per DLH
C. $877.63 per DLH
D. $28.53 per DLH
Answer: D
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