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 ABC system, how much total manufacturing overhead cost would be assigned to Product P99Y?
A) $379,000
B) $610,000
C) $503,000
D) $231,000

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 ABC system, how much total manufacturing overhead cost would be assigned to Product P99Y?
A) $379,000 
B) $610,000 
C) $503,000 
D) $231,000

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 ABC system, how much total manufacturing overhead cost would be assigned to Product P99Y?
A) $379,000 
B) $610,000 
C) $503,000 
D) $231,000

Immen Corporation Manufactures Two Products: Product B82O and Product P99Y