Younan Corporation manufactures two products: Product E47F and Product D02M. 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 E47F and D02M. Using the ABC system, the percentage of the total overhead cost that is assigned to Product E47F is closest to:

Question

Younan Corporation manufactures two products: Product E47F and Product D02M. 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 E47F and D02M.   Using the ABC system, the percentage of the total overhead cost that is assigned to Product E47F is closest to:

Quizplus · Accepted Answer

11eacbfc_c68f_a0af_8ffe_e71f88052947_TB7552_00 The overhead cost charged to Product E47F under the ABC system is:
 11eacbfc_c68f_a0b0_8ffe_8d89cc474434_TB7552_00 Using the ABC system, the percentage of the total overhead cost that is assigned to Product E47F is computed as follows:
 11eacbfc_c68f_a0b1_8ffe_87030a00f69b_TB7552_00

Younan Corporation Manufactures Two Products: Product E47F and Product D02M