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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: Direct Labor-Hours Per Unit Expected Production 1,100 400 Total Direct Labor- Hours 11,000 Product E1 Product A7 Total direct labor-hours 10. 5.0 2,000 13,000 The direct labor rate is $20.60 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $211.00 $287.00 Product E1 Product AZ 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 $ 139,700 65,880 1,030,410 $1,235,990 Product E1 11,000 1,200 3,900 Product A7 2,000 400 3,700 Total 13,000 1,600 7,600 The total overhead applied to Product E1 under activity-based costing is closest to: (Round your Intermediate calculations to 2 declmal places.) The total overhead applied to Product E1 under activity-based costing is closest to: (Round your Intermediate calculations to 2 declmal places.) Multiple Choice O $1,236,046 O $696,428 $1,963,150 0 $528,762
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