Question

51) Snavely, Inc., manufactures and sells two products Product El 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 Direct Labor- Total Direct Production Hours Per Unit Labor-Hours Product E1 800 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 Product A7 $127.10 $299.80 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Labor-related DLHs Machine setups setups Order size MHS Estimated Expected Activity Overhead Cost Product El Product A7 Total $ 100,096 4,000 600 4,600 47,208 300 400 700 738,368 4,100 4,200 8,300 $ 885,672 The total overhead applied to Product El under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) A) $770,160 B) $472,008 C) $644,128 D) $364,736

Answer 1

Answer :- 4.72,008 to & calculations of Total Product El under actricity areerhead applied Based costing :- [note] El Querchaal Actreety cost Actreity Estimated Creethead cost Expected Actricity Producten Product A7 Pool Месец - Cost labor - grelated GOUD - 91,00,096 DLHS 4000 $1.0009 6 XURD 4600 = $ 87000 300 400 4087 208 $47208X300 · Machine setups selaps 700 $ 20,232 4100 $738,368 4200 a $738368 * мҢs Order size 8300 = $ 364 736 Teta) Queshead - $4,72,008 Nate: Estimated Querhead lost sween in the Question as total overhead Cost including [ Product Edt Product asl & To calculate overhed cost of Procluct El the overhead Cost well be chreided I seeresated on the basis of "Expected acti.

- Calculation of overhead cost = * Labour related - Teetal cost Teetal Expected Acticity wit = 91,00.096 = 4600 cost of Labour related Produd F1 100 A6400 4600 - $ 87000 + Maclune setup coct : $ 47208 Total Expected Activity = 9700 Product £1 Expected Activity : 367 $ 47,20 8 X 300 Machine setup lost סטר - $ 20,232 Order size Cost : $ 738,368 Total Actricity = 83,00 Product Ed Exp. Actricity = usoo $734,368 X U100 ordez size owerhead lout cef Product EL 23,00 F $364,736 Tatal querhead cost of Product Ex= $4,72,00