20 Jansen, Inc., manufactures and sells two products: Product C300 and Product B205. Data concerning...

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Accounting

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20 Jansen, Inc., manufactures and sells two products: Product C300 and Product B205. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Expected Direct Labor- Total Direct Production Hours Per Unit Labor-Hours 300 12.0 3,600 500 30.0 15,000 18,600 Product C300 Product B205 Total direct labor-hours The direct labor rate is $25.50 per DLH. The direct materials cost per unit for each product is given below: Product C300 Product B205 Direct Materials Cost per Unit $195.00 $305.30 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Overhead Product Product Activity Cost Pools Activity Measures Cost C300 B205 Total Labor-related DLHS $ 61,488 800 1,000 1,800 Machine setups setups 50,687 400 300 700 Order size MHS 255,754 3,000 2,2005,200 $ 367,929 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: A) $21.07 per order B) $32.19 per order C) $49.18 per order D) $72.41 per order E) None of the above

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