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13) Latiker, Inc., manufactures and sells two products: Product Y9 and Product W0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product Y9	100	8.0	800
Product W0	100	10.0	1,000
Total direct labor-hours			1,800

The direct labor rate is $15.40 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product Y9	$253.00
Product W0	$278.80

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated			Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost			Product Y9		Product W0		Total
Labor-related	DLHs	$	61,488	800		1,000		1,800
Machine setups	setups		50,687	400		300		700
Order size	MHs		155,754	5,000		5,200		10,200
		$	267,929

The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:

A) $31.15 per setup

B) $26.27 per setup

C) $29.95 per setup

D) $72.41 per setup

14) Chrzan, Inc., manufactures and sells two products: Product E0 and Product N0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product E0	300	9.0	2,700
Product N0	1,000	8.0	8,000
Total direct labor-hours			10,700

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated			Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost			Product E0		Product N0		Total
Labor-related	DLHs	$	296,390	2,700		8,000		10,700
Production orders	orders		55,587	300		400		700
Order size	MHs		579,866	5,000		4,700		9,700
		$	931,843

The activity rate for the Order Size activity cost pool under activity-based costing is closest to:

A) $44.16 per MH

B) $59.78 per MH

C) $87.09 per MH

D) $37.05 per MH

15) Strama, Inc., manufactures and sells two products: Product A6 and Product I5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated			Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost			Product A6		Product I5		Total
Labor-related	DLHs	$	179,138	7,000		1,600		8,600
Production orders	orders		38,624	300		500		800
Order size	MHs		171,147	4,400		4,500		8,900
		$	388,909

The activity rate for the Order Size activity cost pool under activity-based costing is closest to:

A) $21.25 per MH

B) $111.96 per MH

C) $45.22 per MH

D) $19.23 per MH

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