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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 Direct Labor- Production Hours Per Unit 1,000 2.0 600 1.0 Total Direct Labor-Hours 2,000 600 2,600 The direct labor rate is $23.90 per DLH. The direct materials cost per unit for each product is given below: Product E1 Product A7 Direct Materials Cost per Unit $ 238.00 $ 215.00 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 DLHS setups MHS Estimated Overhead Cost $ 109,500 51,640 807,690 $ 968,830 Expected Activity Product E1 Product A7 2,000 600 1,100 600 3,400 3,600 Total 2,600 1,700 7,000 The total overhead applied to Product A7 under activity-based costing is closest to: (Round your Intermediate calculations to 2 decimal places.) Multiple Choice O $415,368 O $509,950 O $161,140 $458,868
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