Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. 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 Q5Product J0TotalLabor-relatedDLHs$191,7483,0002,8005,800Production ordersorders 70,536300500800Order sizeMHs 295,5924,3004,5008,800 $557,876 The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:
A. $65.69 per order
B. $88.17 per order
C. $63.40 per order
D. $68.74 per order
Answer: B
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