Bippus Corporation manufactures two products: Product X08R and Product P56L. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products X08R and P56L. Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product P56L?
A) $311,500
B) $373,800
C) $249,200
D) $418,000

Question

Bippus Corporation manufactures two products: Product X08R and Product P56L. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products X08R and P56L.  Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product P56L?
A) $311,500 
B) $373,800 
C) $249,200 
D) $418,000

Quizplus · Accepted Answer

The Answer of Bippus Corporation manufactures two products: Product X08R and Product P56L. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products X08R and P56L.  Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product P56L?
A) $311,500 
B) $373,800 
C) $249,200 
D) $418,000

Bippus Corporation Manufactures Two Products: Product X08R and Product P56L