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Collins, Inc., manufactures and sells two products: Product N2 and Product U10 Data concerning the expected production of each product and the expected total direct
Collins, Inc., manufactures and sells two products: Product N2 and Product U10 Data concerning the expected production of each product and the expected total direct labor hours (DLHs) required to produce that output appear below: Expected Production Product N2 Product U10 Total direct labor hours Direct Labor Total Direct Hours Per Unit Labor Hours 1000 6 6,000 200 9 1,800 7,800 The company is considering adopting an activity-based costing system with the following activity cost pools. activity measures, and expected activity: Activity Cost Pools Labor Related Machine setups Order size Activity Measure DLHS setups MHS Estimated OH Costs $ 170,664 $ 59,040 $ 252,648 $ 482,352 Expected Activity Product N2 Product U10 Total 16,000 1,800 7,800 400 500 900 3,400 3,200 6,600 The total overhead applied to N2 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) O $. 482,352 O Lauor Related Machine setups Order size Total 7 DLHS setups MHs $ 170,664 59,040 252,648 482,352 6,000 400 3,400 1,800 500 3,200 $ $ 6 The total overhead applied to N2 under activity based costing is closest to: (Round your intermediate calculations to 2 decimal places.) $ 482,352 $ 131,280 o $ 194,680 $ 287,672
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