Multiple Choice
Scarff, Inc., manufactures and sells two products: Product O6 and Product K2. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: 
The direct labor rate is $23.20 per DLH. The direct materials cost per unit for each product is given below: 
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 
A) $88.19 per setup
B) $123.06 per setup
C) $119.55 per setup
D) $53.69 per setup
Correct Answer:
Verified
Correct Answer:
Verified
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