Fullard, Inc., manufactures and sells two products, Product E2 and Product G3. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required producing that output appears below:

The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

The total overhead applied to Product E2 under activity-based costing is closest to:
a. $671,750
b. $417,960
c. $621,110
d. $725,520

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Expected Direct Labor-Hours Production Total Direct Labor-Hours Per Unit Product E2 6.0 6,000 1,000 800 5.0 4,000 Product G3 Total direct labor- hours 10,000 Estimated Expected Activity Activity Overhead Product Product Activity Cost Pools Total Measures Cost E2 G3 Labor-related DLHS $269,900 6,000 4,000 10,000 Machine setups 74,178 500 400 900 setups General factory MHs 865,080 4,300 4,600 8,900 $1,209,158