Cambra Corporation manufactures two products: Product N70E and Product F54Y. 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 N70E and F54Y. Using the ABC system, the percentage of the total overhead cost that is assigned to Product F54Y is closest to:

Question

Cambra Corporation manufactures two products: Product N70E and Product F54Y. 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 N70E and F54Y.   Using the ABC system, the percentage of the total overhead cost that is assigned to Product F54Y is closest to:

Quizplus · Accepted Answer

11eacbfc_c667_a604_8ffe_bf49d39e6ec6_TB7552_00 The overhead cost charged to Product F54Y under the ABC system is:
 11eacbfc_c667_a605_8ffe_a165c1b75ecd_TB7552_00 Using the ABC system, the percentage of the total overhead cost that is assigned to Product F54Y is computed as follows:
 11eacbfc_c667_cd16_8ffe_1b303eff8b35_TB7552_00

Cambra Corporation Manufactures Two Products: Product N70E and Product F54Y