Scarff,Inc. ,manufactures and sells two products: Product O6 and Product K2.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 $23.20 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: 
Definitions:
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