Cost Accounting: Privott, Incorporated, manufactures and sells two products: Product Z9 and Product

Privott, Incorporated, manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity
Product Z9 Product N0 Total
Labor-related DLHs $ 343,018 8,300 4,900 13,200
Product testing tests 55,247 1,350 1,450 2,800
Order size MHs 480,608 5,900 6,200 12,100
$ 878,873
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

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