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:
Definitions:
BCG Matrix
A strategic analysis tool that helps organizations prioritize their business units or products by categorizing them into four types based on market growth and market share: Stars, Cash Cows, Question Marks, and Dogs.
Cash Flow
Cash flow refers to the net amount of cash and cash-equivalents being transferred into and out of a business.
Question Marks
Products or businesses that operate in high-growth markets but have low market share, often requiring significant investment to improve their position.
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