FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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о
O
O
O
$1,154,399
$655,132
$547,376
$496,221
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Transcribed Image Text:Multiple Choice о O O O $1,154,399 $655,132 $547,376 $496,221
Snavely, Incorporated, 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:
Product E1
Product A7
Total direct labor-hours
Product E1
Product A7
Direct Materials Cost
per Unit
$ 248.00
$257.00
The direct labor rate is $23.60 per DLH. The direct materials cost per unit for each product is given below:
Activity Cost Pools
Labor-related
Expected
Production
1,200
400
Machine setups
Order size
Direct Labor-
Hours Per Unit
2.0
1.0
The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Expected Activity
Activity Estimated Overhead
Measures
DLHS
setups
MHS
Total Direct
Labor-Hours
2,400
400
2,800
Cost
$ 130,500
61,530
962,370
$ 1,154,400
Product E1 Product A7
2,400
1,300
3,300
400
400
3,100
Total
2,800
1,700
6,400
The total overhead applied to Product E1 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
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Transcribed Image Text:Snavely, Incorporated, 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: Product E1 Product A7 Total direct labor-hours Product E1 Product A7 Direct Materials Cost per Unit $ 248.00 $257.00 The direct labor rate is $23.60 per DLH. The direct materials cost per unit for each product is given below: Activity Cost Pools Labor-related Expected Production 1,200 400 Machine setups Order size Direct Labor- Hours Per Unit 2.0 1.0 The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Estimated Overhead Measures DLHS setups MHS Total Direct Labor-Hours 2,400 400 2,800 Cost $ 130,500 61,530 962,370 $ 1,154,400 Product E1 Product A7 2,400 1,300 3,300 400 400 3,100 Total 2,800 1,700 6,400 The total overhead applied to Product E1 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
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