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:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product E1	900	6.0	5,400
Product A7	600	3.0	1,800
Total direct labor-hours			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
Product E1	$ 226.00
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	Activity Measures	Estimated Overhead Cost	Expected Activity
			Product E1	Product A7	Total
Labor-related	DLHs	$ 139,900	5,400	1,800	7,200
Machine setups	setups	65,970	1,000	600	1,600
Order size	MHs	1,031,820	3,100	4,000	7,100
		$ 1,237,690

The total overhead applied to Product E1 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

$1,237,707

$596,675

$1,225,512

$450,523