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Barkes, Inc., manufactures and sells two products: Product BO and Product B5. Data concerning the expected production of each product and the expected total direct
Barkes, Inc., manufactures and sells two products: Product BO and Product B5. Data concerning the expected production of each product and the expected total direct labor hours (DLHs) required to produce that output appear below: Direct Expected Labor Hours Total Direct Production Per Unit Labor-Hours Product BO 400 7.0 2,800 Product B5 500 4.0 2,000 Total direct labor-hours 4.800 The direct labor rate is $22.10 per DLH. The direct materials cost per unit is $288.10 for Product BO and $118.90 for Product B5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost DLHS $ 136,944 Labor related Production orders Order size Expected Activity Product Product BO B5 Total 2,800 2,000 4,800 500 400 3,300 3,000 6,300 orders 64,629 900 MHS 588.294 $ 789.867 The total overhead applied to Product BO under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) $423,943 $460.768 $308,156 $351,052
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