Question

i need some help on this practice problem i have no idea what im doing. the last andwer choice thay is not showing is ($508,861)

Help Save & Exit 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. Direct Expected Labor-Hours Production Total Direct Labor- Hours 1,800 600 2.400 see Per Unit 2.0 1.0 Product E1 Product A7 Total direct labor-hours 600 The direct labor rate is $24.10 per DLH. The direct materials cost per unit for each product is given below. Direct Materials Cost per Unit $282.00 $204.00 Product El Product A7

Answer 1

Solution:

Computation of Activity rates
Activity Cost Pool	Total Cost	Total Activity	Activity rate
labor related	$1,32,400	2400	$55.17	per DLH
Machine setups	$62,430	1600	$39.02	per setup
order size	$9,76,450	7100	$137.53	per MH
Computation of Overhead allocated to Product E1
Activity Cost Pool	Activity rate		Activity usage by E1	Overhead assigned
labor related	$55.17	per DLH	1800	$99,306
Machine setups	$39.02	per setup	1000	$39,020
order size	$137.53	per MH	3700	$5,08,861
Total Overhead allocated to Product E1				$6,47,187