Boudoin Corporation manufactures two products: Product T72T and Product L34S. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products T72T and L34S.
Required:
a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T72T?
b. Using the ABC system, what percentage of the total overhead cost is assigned to Product L34S?

Question

Boudoin Corporation manufactures two products: Product T72T and Product L34S. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products T72T and L34S.
   Required:
a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T72T?
b. Using the ABC system, what percentage of the total overhead cost is assigned to Product L34S?

Quizplus · Accepted Answer

The Answer of Boudoin Corporation manufactures two products: Product T72T and Product L34S. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products T72T and L34S.
   Required:
a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T72T?
b. Using the ABC system, what percentage of the total overhead cost is assigned to Product L34S?

Boudoin Corporation Manufactures Two Products: Product T72T and Product L34S