O$580,843$1,071,491$462,030$1,513,560 Snavely, Incorporated, manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product andthe expected total direct labor-hours (DLHs) required to produce that output appear below:Product E1Product A7Total direct labor-hoursProduct E1Product A7The direct labor rate is $22.70 per DLH. The direct materials cost per unit for each product is given below:Direct MaterialsCost per Unit$286.00$ 223.00Activity Cost PoolsLabor-relatedMachine setupsOrder sizeExpectedProduction600500The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Direct Labor- Total DirectHours Per Unit Labor-Hours6,00010.05.02,5008,500ActivityMeasuresDLHssetupsMHSEstimatedExpected ActivityOverhead Cost Product E1 Product A7$ 121,10057, 110893,250$ 1,071,4606,0007003,0002,5005002,800Total8,5001,2005,800The total overhead applied to Product E1 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

Activity-based costing or ABC is actually a method of assigning indirect costs and overhead such as…

Answered: costing

Business

Accounting

costing

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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