Cambra Corporation manufactures two products: Product N70E and Product F54Y. 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 N70E and F54Y. Using the ABC system, the percentage of the total overhead cost that is assigned to Product F54Y is closest to:
A) 51.17%
B) 27.16%
C) 50.00%
D) 24.01%

Question

Cambra Corporation manufactures two products: Product N70E and Product F54Y. 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 N70E and F54Y.  Using the ABC system, the percentage of the total overhead cost that is assigned to Product F54Y is closest to:
A) 51.17% 
B) 27.16% 
C) 50.00% 
D) 24.01%

Quizplus · Accepted Answer

The Answer of Cambra Corporation manufactures two products: Product N70E and Product F54Y. 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 N70E and F54Y.  Using the ABC system, the percentage of the total overhead cost that is assigned to Product F54Y is closest to:
A) 51.17% 
B) 27.16% 
C) 50.00% 
D) 24.01%

Cambra Corporation Manufactures Two Products: Product N70E and Product F54Y