Pachero,Inc. ,manufactures and sells two products: Product T1 and Product U6.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:
A)$178.57 per MH
B)$57.02 per MH
C)$217.90 per MH
D)$66.24 per MH

Question

Pachero,Inc. ,manufactures and sells two products: Product T1 and Product U6.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: 
A)$178.57 per MH 
B)$57.02 per MH 
C)$217.90 per MH 
D)$66.24 per MH

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $430,560 ÷ 6,500 MHs = $66.24 per MH