Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B56Z and D32N.Activity Cost PoolActivity MeasureTotal CostTotal ActivityMachiningMachine-hours$330,00015,000MHsMachine setupsNumber of setups$50,000100setupsProduct designNumber of products$88,0002productsOrder sizeDirect labor-hours 280,00010,000DLHsActivity MeasureProduct B56ZProduct D32NMachine-hours6,0009,000Number of setups8020Number of products11Direct labor-hours6,0004,000What is the activity rate for the Machining activity cost pool?
A. $74.80 per MH
B. $36.67 per MH
C. $55.00 per MH
D. $22.00 per MH
Answer: D
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Fill in the blank(s) with the appropriate word(s).
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