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Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the...

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Accounting

Snavely, Inc., 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 10.0 9,000
Product A7 600 5.0 3,000
Total direct labor-hours 12,000

The direct labor rate is $25.90 per DLH. The direct materials cost per unit for each product is given below:

Direct Materials Cost per Unit
Product E1 $284.00
Product A7 $240.00

The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product E1 Product A7 Total
Labor-related DLHs $ 120,900 9,000 3,000 12,000
Machine setups setups 57,020 1,000 600 1,600
Order size MHs 891,840 4,000 2,600 6,600
$ 1,069,760

The activity rate for the Order Size activity cost pool under activity-based costing is closest to:

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