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

800

5.0

4,000

Product A7

300

2.0

600

Total direct labor-hours

4,600

The direct labor rate is $18.40 per DLH. The direct materials cost per unit for each product is given below:

Direct Materials

Cost per Unit

Product E1

$127.10

Product A7

$299.80

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

$

100,096

4,000

600

4,600

Machine setups

setups

47,208

300

400

700

Order size

MHs

738,368

4,100

4,200

8,300

$

885,672

The total overhead applied to Product A7 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

A) $373,632

B) $115,524

C) $241,548

D) $413,664

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