Horgen Corporation manufactures two products: Product M68B and Product H27T. 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 M68B and H27T. Using the activity-based costing system, how much total manufacturing overhead cost would be assigned to Product H27T?
A) $291,000
B) $174,000
C) $465,000
D) $454,500

Question

Horgen Corporation manufactures two products: Product M68B and Product H27T. 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 M68B and H27T.  Using the activity-based costing system, how much total manufacturing overhead cost would be assigned to Product H27T?
A) $291,000 
B) $174,000 
C) $465,000 
D) $454,500

Quizplus · Accepted Answer

The Answer of Horgen Corporation manufactures two products: Product M68B and Product H27T. 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 M68B and H27T.  Using the activity-based costing system, how much total manufacturing overhead cost would be assigned to Product H27T?
A) $291,000 
B) $174,000 
C) $465,000 
D) $454,500

Horgen Corporation Manufactures Two Products: Product M68B and Product H27T