Question
Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total direct
Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. 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 E1 | 1,100 | 2.0 | 2,200 |
Product A7 | 300 | 1.0 | 300 |
Total direct labor-hours | 2,500 | ||
The direct labor rate is $21.10 per DLH. The direct materials cost per unit for each product is given below:
Direct Materials Cost per Unit | |||
Product E1 | $229.00 | ||
Product A7 | $220.00 | ||
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 E1 | Product A7 | Total | |
Labor-related | DLHs | $ | 137,300 | 2,200 | 300 | 2,500 |
Machine setups | setups | 64,730 | 1,200 | 300 | 1,500 | |
Order size | MHs | 1,012,420 | 2,800 | 3,700 | 6,500 | |
$ | 1,214,450 | |||||
The total overhead applied to Product E1 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
rev: 03_25_2018_QC_CS-119201
Multiple Choice
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$1,214,465
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$608,732
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$523,169
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$436,128
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