Younan Corporation manufactures two products: Product E47F and Product D02M. 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 E47F and D02M. Using the activity-based costing system, the percentage of the total overhead cost that is assigned to Product E47F is closest to:
A) 17.84%
B) 33.09%
C) 50.00%
D) 50.94%

Question

Younan Corporation manufactures two products: Product E47F and Product D02M. 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 E47F and D02M.  Using the activity-based costing system, the percentage of the total overhead cost that is assigned to Product E47F is closest to:
A) 17.84% 
B) 33.09% 
C) 50.00% 
D) 50.94%

Quizplus · Accepted Answer

The Answer of Younan Corporation manufactures two products: Product E47F and Product D02M. 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 E47F and D02M.  Using the activity-based costing system, the percentage of the total overhead cost that is assigned to Product E47F is closest to:
A) 17.84% 
B) 33.09% 
C) 50.00% 
D) 50.94%

Younan Corporation Manufactures Two Products: Product E47F and Product D02M