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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 800 500 Total Direct Labor- Hours 3,200 1,000 4,200 Product E1 Product AZ Total direct labor-hours 4.0 2.0 The direct labor rate is $20.80 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $276.00 $280.00 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 $ 137,100 64,650 1,011, 170 $1,212,920 Product E1 3,200 900 2,500 Product A7 1,000 500 3,100 Total 4,200 1,400 5,600 The total overhead applied to Product A7 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
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