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Barkes, Incorporated, manufactures and sells two products: Product B0 and Product B5. Data concerning the...

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Accounting

Barkes, Incorporated, 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-Hours
Product B0 400 7.0 2,800
Product B5 500 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 Pools Activity Measures Estimated Overhead Cost Expected Activity
Product B0 Product B5 Total
Labor-related DLHs $ 136,944 2,800 2,000 4,800
Production orders orders 64,629 500 400 900
Order size MHs 588,294 3,300 3,000 6,300
$ 789,867

The activity rate for the Order Size activity cost pool under activity-based costing is closest to:

Multiple Choice

$164.56 per MH

$68.47 per MH

$65.82 per MH

$93.38 per MH

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