Weissman Corporation manufactures two products: Product E16S and Product P17K. The company 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 E16S and P17K. Using the ABC system, the percentage of the total overhead cost that is assigned to Product E16S is closest to:

Question

Weissman Corporation manufactures two products: Product E16S and Product P17K. The company 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 E16S and P17K.   Using the ABC system, the percentage of the total overhead cost that is assigned to Product E16S is closest to:

Quizplus · Accepted Answer

11eacbfc_c666_4668_8ffe_b5324125a22a_TB7552_00 The overhead cost charged to Product E16S under the ABC system is:
 11eacbfc_c666_6d79_8ffe_43cd2157941b_TB7552_00 Using the ABC system, the percentage of the total overhead cost that is assigned to Product E16S is computed as follows:
 11eacbfc_c666_6d7a_8ffe_973ea2e9578a_TB7552_00

Weissman Corporation Manufactures Two Products: Product E16S and Product P17K