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Skiver, Inc., manufactures and sells two products: Product K5 and Product J2. Data concerning the expected production of each product and the expected total direct
Skiver, Inc., manufactures and sells two products: Product K5 and Product J2. 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 K5 | 800 | 9.0 | 7,200 |
Product J2 | 1,000 | 12.0 | 12,000 |
Total direct labor-hours | 19,200 | ||
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 K5 | Product J2 | Total | |
Labor-related | DLHs | $ | 682,752 | 7,200 | 12,000 | 19,200 |
Machine setups | setups | 17,556 | 500 | 600 | 1,100 | |
Order size | MHs | 721,342 | 4,900 | 5,200 | 10,100 | |
$ | 1,421,650 | |||||
The total overhead applied to Product K5 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
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