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30) Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total
30) Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product E1 Product A7 Total direct labor-hours Expected Direct Labor- Production Hours Per Unit 800 5.0 300 2.0 Total Direct Labor-Hours 4,000 600 4,600 The direct labor rate is $18.40 per DLH. The direct materials cost per unit for each product is given below: Product E1 Product A7 Direct Materials Cost per Unit $127.10 $299.80 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Overhead Activity Cost Pools Activity Measures Cost Product El Product A7 Total $ 100,096 DLHs Labor-related 4,000 600 4,600 47,208 300 400 700 Machine setups setups 738.368 MHS 4,100 4,200 8,300 Order size S 885,672 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: A) $166.83 per MH B) $88.96 per MH C) $65.12 per MH D) $192.54 per MH
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