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 D02M is closest to:
A) 49.06%
B) 22.30%
C) 26.76%
D) 50.00%

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 D02M is closest to:
A) 49.06% 
B) 22.30% 
C) 26.76% 
D) 50.00%

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 D02M is closest to:
A) 49.06% 
B) 22.30% 
C) 26.76% 
D) 50.00%

Younan Corporation Manufactures Two Products: Product E47F and Product D02M