Heathex Manufacturing Company Manufactures Two Products (I and II) What Is the Allocation Rate Per Labor Transaction Using Activity-Based

Heathex Manufacturing Company manufactures two products (I and II) . The overhead costs ($36,200) have been divided into three cost pools that use the following activity drivers: $\begin{array}{lccc} &&\text { Number of Labor }\\\text { Product } & \text {Number of Orders } & \text { Transactions } &\text { Labor Hours }\\\hline I& 12 & 35 & 290 \\II & 8&125&1,250 \\\text { Cost per pool } & \$ 10,200 & \$ 6,000 & \$ 20,000\end{array}$ What is the allocation rate per labor transaction using activity-based costing (ABC) system? (Round the answer to two decimal places.)

A) $75.55
B) $68.97
C) $291.43
D) $37.50

Correct Answer:

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