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Snavely, Incorporated, manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total direct
Snavely, Incorporated, 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: Product E1 Product A7 Total direct labor-hours Expected Production 900 600 Direct Labor- Hours Per Unit Total Direct Labor-Hours 6.0 5,400 3.0 1,800 7,200 The direct labor rate is $26.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 226.00 Product E1 Product A7 $ 214.00 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Machine setups Order size Estimated Overhead Cost Expected Activity Product E1 Product A7 Total 5,400 1,800 7,200 1,000 600 1,600 3,100 4,000 7,100 Activity Measures DLHS setups MHs $ 139,900 1,031,820 65,970 $ 1,237,690 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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