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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
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 El Product A7 Total direct labor-hours Expected Production 600 500 Direct Labor- Hours Per Unit Total Direct Labor-Hours 10.0 6,000 5.0 2,500 8,500 The direct labor rate is $22.70 per DLH. The direct materials cost per unit for each product is given below. Direct Materials Cost per Unit Product El Product A7 $ 286.00 $ 223.00 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 Activity Measures Estimated Expected Activity Overhead Cost Product El DLH $ 121,100 6,000 setups Mits 57,110 893,250 700 3,000 Product A7 2,500 500 Total 8,500 1,200 2,800 5,800 $ 1,071,460 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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