Snavely, Inc., manufactures and sells two products: Product E1and Product A7. Data concerning the expected production of eachproduct and the expected total direct labor-hours (DLHs) requiredto produce that output appear below:
| Expected Production | Direct Labor-Hours Per Unit | Total Direct Labor-Hours |
| Product E1 | 1,100 | 2.0 | 2,200 |
| Product A7 | 300 | 1.0 | 300 |
| Total direct labor-hours | | | 2,500 |
|
The direct labor rate is $21.10 per DLH. The direct materialscost per unit for each product is given below:
| Direct Materials
Cost per Unit |
| Product E1 | $229.00 |
| Product A7 | $220.00 |
|
The company has an activity-based costing system with thefollowing activity cost pools, activity measures, and expectedactivity:
| | Estimated | Expected Activity |
| Activity Cost Pools | Activity Measures | Overhead Cost | Product E1 | Product A7 | Total |
| Labor-related | DLHs | $ | 137,300 | 2,200 | 300 | 2,500 |
| Machine setups | setups | | 64,730 | 1,200 | 300 | 1,500 |
| Order size | MHs | | 1,012,420 | 2,800 | 3,700 | 6,500 |
| | $ | 1,214,450 | | | |
|
The total overhead applied to Product E1 under activity-basedcosting is closest to: (Round your intermediatecalculations to 2 decimal places.)
rev: 03_25_2018_QC_CS-119201
Multiple Choice
$1,214,465
$608,732
$523,169
$436,128
