Hails Corporation manufactures two products: Product Q21F and Product H44W. 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 Q21F and H44W. Using the ABC system, the percentage of the total overhead cost that is assigned to Product H44W is closest to:

Question

Hails Corporation manufactures two products: Product Q21F and Product H44W. 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 Q21F and H44W.   Using the ABC system, the percentage of the total overhead cost that is assigned to Product H44W is closest to:

Quizplus · Accepted Answer

11eacbfc_c672_f110_8ffe_dfcac49c020c_TB7552_00 The overhead cost charged to ProductH44W under the ABC system is:
 11eacbfc_c673_1821_8ffe_a7aeaedf003d_TB7552_00 Using the ABC system, the percentage of the total overhead cost that is assigned to Product H44W is computed as follows:
 11eacbfc_c673_1822_8ffe_ff27ea61c83f_TB7552_00

Hails Corporation Manufactures Two Products: Product Q21F and Product H44W