Ben Corporation manufactures two products: Product E05G and Product L64Y. 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 E05G and L64Y. Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product E05G is closest to:
A) 27.87%
B) 19.00%
C) 30.00%
D) 50.00%
Correct Answer:
Verified
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