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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 1,100 200 Total Direct Labor- Hours 8,800 800 9,600 Product E1 Product A7 Total direct labor-hours 8.0 4.0 The direct labor rate is $24.10 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $285.00 $235.00 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 $ 118,800 56,010 876,030 $1,050,840 Product E1 8,800 1,200 3,500 Product A7 800 200 2,700 Total 9,600 1,400 6,200 The total overhead applied to Product E1 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) The total overhead applied to Product E1 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,050,922 $651.506 $1,497,432 $494,550
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