SIM Power Ltd., manufactures and sells two products: Product K1 and Product S6. Data concerning the expected production of each product and the expected total direct labour-hours (DLHs) required to produce that output appear below:

	Expected Production	Direct Labour-Hours Per Unit	Total Direct Labour-Hours
Product K1	500	8.0	4,000
Product S6	100	5.0	500
Total direct labour-hours			4,500

The company is considering adopting 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 K1	Product S6	Total
Labour-related	DLHs	$127,485	4,000	500	4,500
Production orders	orders	27,820	400	600	1,000
General factory	MHs	452,868	4,000	3,800	7,800
		$608,173

The total overhead cost assigned to Product K1 under activity-based costing is closest to:

Question 13 options:

1)

$103,292

2)

$69,200

3)

$$251,485

4)

$356,688