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Salvatori, Inc., manufactures and sells two products: Product A4 and Product Q5. Data concerning the expected production of each product and th expected total direct
Salvatori, Inc., manufactures and sells two products: Product A4 and Product Q5. Data concerning the expected production of each product and th expected total direct labor-hours (DLHS) required to produce that output appear below: Direct Labor-Hours Per Unit Expected Production 530 830 Total Direct Labor- Hours 3,339 2,739 6,078 Product A4 Product 25 Total direct labor-hours 6.3 3.3 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Labor-related Machine setups Order size Activity Measures DLHS setups MHS Estimated Overhead Cost $159,558 7,050 496,027 $662,635 Product A4 3,339 450 3,500 Product 25 2,739 350 3,800 Total 6,078 800 7,300 The overhead applied to each unit of Product A4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
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