Bohringer,Inc. ,manufactures and sells two products: Product A1 and Product X5.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 $28.20 per DLH.The direct materials cost per unit is $256.50 for Product A1 and $165.20 for Product X5. The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: 
The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:
Definitions:
Markup
The difference between the cost of a good or service and its selling price, expressed as a percentage of the cost.
Cost-Plus Approach
A pricing strategy where a fixed percentage is added to the production cost to determine the sale price of a product.
Bottleneck
A stage in a process that reduces the overall capacity because it runs at the slowest speed.
Contribution Margin
The excess of sales over variable costs.
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