Immen Corporation manufactures two products: Product B82O and Product P99Y. 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 B82O and P99Y. Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product P99Y?
A) $503,000
B) $704,200
C) $396,000
D) $301,800

Question

Immen Corporation manufactures two products: Product B82O and Product P99Y. 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 B82O and P99Y.  Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product P99Y?
A) $503,000 
B) $704,200 
C) $396,000 
D) $301,800

Quizplus · Accepted Answer

The Answer of Immen Corporation manufactures two products: Product B82O and Product P99Y. 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 B82O and P99Y.  Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product P99Y?
A) $503,000 
B) $704,200 
C) $396,000 
D) $301,800

Immen Corporation Manufactures Two Products: Product B82O and Product P99Y