Strama, Inc., manufactures and sells two products: Product A6 and Product I5. 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 A6Product I5TotalLabor-relatedDLHs$179,1387,0001,6008,600Production ordersorders 38,624300500800Order sizeMHs 171,1474,4004,5008,900 $388,909 The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
A. $111.96 per MH
B. $45.22 per MH
C. $21.25 per MH
D. $19.23 per MH
Answer: D
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