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Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of eacThe company has an activity-based costing system with the following activity cost pools, activity measures, and expected actiMultiple Choice o О $597,435 $597,435 o $201,750 o О $559,767 o $615,497

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Answer #1

Answer:

Determine the Activity rate for each activity pool
total Cost pool Total Activity Activity rate = Cost pool/Activity
Labor Related 137100 4200 32.64
Machine Setup 64650 1400 46.18
Order size 1011170 5600 180.57
Activity rate = Cost pool / Activity
Product A7
Activity Rate Activity OH allocated = Activity*rate
labor Related 32.64 1000 32640
Machine Setup 46.18 500 23090
Order Size 180.57 3100 559767
Total Overhead cost Allocated to A7 615497
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