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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: Direct Labor- Expected Hours Per Production Unit 1,000 10.0 200 5.0 Total Direct Labor- Hours 10,000 1,000 11,000 Product E1 Product A7 Total direct labor-hours The direct labor rate is $25.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 233.00 $ 200.00 Product El Product A7 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 $ 135,700 64,000 1,001,010 $ 1,200, 710 Expected Activity Product E1 Product A7 Total 10,000 1,000 11,000 1,100 200 1,300 2,800 3,200 6,000 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Choice $166.84 per MH $109.16 per MH $90.77 per MH $135.70 per MH
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