Serva,Inc ,Manufactures and Sells Two Products: Product R4 and Product

Multiple Choice

Serva,Inc. ,manufactures and sells two products: Product R4 and Product N4.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 $24.70 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: The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

A) $72.50 per DLH
B) $238.33 per DLH
C) $15.23 per DLH
D) $48.33 per DLH