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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 Direct Labor- Total Direct Production Hours Per Unit Labor-Hours Product E1 800 5.0 4,000 Product AZ 300 2.0 600 Total direct labor-hours 4,600 The direct labor rate is $18.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Produkt E1 $127.10 Product A7 $299.80 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Product Product Activity Cost Pools Measures Cost E1 AZ Total Labor-related DLHs $ 100,096 4,000 600 4,600 Machine setups setups 47,208 300 400 700 Order size MHS 738,368 4,100 4,200 8,300 $ 885,672 The total overhead applied to Product E1 under activity-based costing is closest to: (Round your
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