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

Multiple Choice

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