Ciulla Corporation manufactures two products: Product J12N and Product H63J. The company 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 J12N and H63J.
Required:
a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product H63J?
b. Using the ABC system, what percentage of the total overhead cost is assigned to Product J12N?

Question

Ciulla Corporation manufactures two products: Product J12N and Product H63J. The company 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 J12N and H63J.
   Required:
a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product H63J?
b. Using the ABC system, what percentage of the total overhead cost is assigned to Product J12N?

Quizplus · Accepted Answer

The Answer of Ciulla Corporation manufactures two products: Product J12N and Product H63J. The company 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 J12N and H63J.
   Required:
a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product H63J?
b. Using the ABC system, what percentage of the total overhead cost is assigned to Product J12N?

Ciulla Corporation Manufactures Two Products: Product J12N and Product H63J