Question
Fullard, Inc., manufactures and sells two products: Product E2 and Product G3. Data concerning the expected production of each product and the expected total direct
Fullard, Inc., manufactures and sells two products: Product E2 and Product G3. 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 Direct Labor-Hours Per Unit Total Direct Labor-Hours Product E2 1,000 6.0 6,000 Product G3 800 5.0 4,000 Total direct labor-hours 10,000 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product E2 Product G3 Total Labor-related DLHs $269,900 6,000 4,000 10,000 Machine setups setups 74,178 500 400 900 General factory MHs 865,080 4,300 4,600 8,900 $1,209,158 The total overhead applied to Product E2 under activity-based costing is closest to:
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