Tesh, Inc., manufactures and sells two products: Product P9 and Product I9. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
A)$214.40 per DLH
B)$1,041.27 per DLH
C)$142.93 per DLH
D)$18.72 per DLH

Question

Tesh, Inc., manufactures and sells two products: Product P9 and Product I9. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:  The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
A)$214.40 per DLH 
B)$1,041.27 per DLH 
C)$142.93 per DLH 
D)$18.72 per DLH

Quizplus · Accepted Answer

The Answer of Tesh, Inc., manufactures and sells two products: Product P9 and Product I9. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:  The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
A)$214.40 per DLH 
B)$1,041.27 per DLH 
C)$142.93 per DLH 
D)$18.72 per DLH

Tesh, Inc, Manufactures and Sells Two Products: Product P9 and Product